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Home prices on less slippery slope?

OFHEO indexes show slowdown in price declines

The rate of decline in U.S. home prices slowed during the second quarter, but the 4.8 percent year-over-year drop in a house-price index that relies on data from Fannie Mae and Freddie Mac was the largest in the index's 17-year history.The Office of Federal Housing Enterprise Oversight's national purchase-only house-price index showed prices falling a seasonally adjusted 1.4 percent during the second quarter, compared with 1.7 percent in the first quarter.Looking back a year, the purchase-only house-price index fell 4.8 percent. An OFHEO index that includes not only sales of homes, but valuations conducted when homeowners refinance their loans, showed prices down 1.7 percent from a year ago.With the price of other goods and services increasing by 5.3 percent over the last year, the purchase-only index shows national home prices falling approximately 10.1 percent in real terms, OFHEO said. The all-transactions index, which includes refinancings, showed a 7 percent decline in real terms....