Industry News

Home prices grow at slowest rate in a decade

Seven states register price declines in Q1, OFHEO reports

Home prices nationwide continued to rise in the first quarter of 2007, although at the lowest rate in 10 years, according to a federal agency's analysis of data from mortgage repurchasers Fannie Mae and Freddie Mac. For the year, homes appreciated faster than other goods and services that make up the Consumer Price Index, the Office of Federal Housing Enterprise Oversight (OFHEO) reported today in issuing its quarterly house-price index (HPI). OFHEO reported the HPI rose .5 percent from the previous quarter, down from the 1.3 percent gain in home prices registered between the third and fourth quarters of 2006. For the year, home prices tracked in the index were up 4.3 percent from the same quarter a year ago, compared with a 1.6 percent rise in the price of goods and services in the consumer price index, excluding shelter. "Low interest rates and unemployment rates continue to prop up house prices in most markets," said OFHEO Chief Economist Patrick Lawler in a statement accompanying...