The news today let us know that home prices are up slightly 0.3% nationally in July. The home prices rose slightly according to a government index as further evidence the housing market is stablizing. We are all glad to see this up tick.
The Federal Housing Finance Agency said Tuesday that price showed a 0.3% increase from the prior month. However, this same agency showed a correction for their calculations in June which was revised down to just 0.1%.
This index is off 4.2% lower than last year at this time. This index is based on loans owned or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac. This index has declined less than other housing market measures. It excludes luxury homes and the subprime loans. Since the market is softening and more homes qualify for FHA loans it does effect this index.
It is such a small increase and some many homes are left out of the picture it is difficult to draw any conclusions from this index at this time. I would think it might show that the markte is flat. We are all hoping that this does indicate that the home prices are moving up
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