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Home prices grow at slowest pace in 12 years

Freddie Mac reports falling prices in five of nine U.S. regions during Q2

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Home-price appreciation slowed to an annual rate of 0.4 percent during the second quarter, the slowest quarterly growth rate in more than 12 years, Freddie Mac said in releasing its latest home-price index. Freddie Mac's Conventional Mortgage Home Price Index "Classic Series" -- which excludes homes with nonconforming mortgages of more than $417,000 -- draws on data from sales of homes and also appraisals undertaken for mortgage refinancings. The Classic Series index showed home values appreciated 3.3 percent on average for the 12 months ending in June, compared with 10.2 percent growth during the same period a year earlier. When refinancings were excluded and only sales of homes with conventional mortgages were analyzed, Freddie Mac found home prices appreciated at an annual rate of 5.8 percent during the second quarter. But year-over-year appreciation in the purchase-only index amounted to just 2.5 percent, down from 8.4 percent for the 12 months ending June 2006 and the index's slo...