A very important news alert from Market Watch, reblogged with permission
Economic Report
Sept. 22, 2010, 10:59 a.m. EDT · Recommend (5) · Post: 
U.S. house prices lowest in nearly six years
Prices fall 0.5% in July, and June price drop revised to 1.2%
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) - U.S. house prices fell 0.5% in July to the lowest level in nearly six years, according to data released Wednesday by the Federal Housing Finance Agency.
The 0.5% seasonally adjusted drop in monthly prices came after a 1.2% drop in June; the FHFA initially reported that June prices slipped 0.3%.
Over 12 months, prices are down 3.3%. The FHFA said that the July index is roughly the same value as was seen in September 2004.
The FHFA monthly index is calculated based on purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The more closely followed Case-Shiller home price index for July is due on Tuesday.
House prices have been hurt more recently by the expiration of the home-buyer tax credit, and more broadly by the availability of foreclosed homes and a nearly 10% unemployment rate.
"In the absence of a rapid employment growth, and factoring in all the potential excess housing supply from foreclosures and looming delinquencies, housing prices will likely remain under pressure and continue trending lower throughout this year and next," said Yelena Schulyatyeva, an economist at BNP Paribas.
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