DOW JONES NEWSWIRES
U.S. home prices gained 1.7% in the second quarter from the
first quarter, according to Freddie Mac (FRE), as every region
posted sequential increases for the first time in two years.
Freddie Mac cited historically low mortgage rates as a catalyst
for bring buyers into the market. The closely followed S&P
Case-Shiller index released last week showed a rise, in the second
quarter, for the first time in three years.
On an annualized basis, the increase in Freddie's Conventional
Mortgage Home Price Index, which excludes all refinancings, was 7%.
The latest quarter's gains helped shrink the average price decline
during the past four quarters to 6.7%.
Freddie chief economist Frank Nothaft said the
quarter-to-quarter increase was also due to seasonal buying, as
sales are generally stronger in the spring.
Sequentially, the nation was led by a 3.2% gain in the Pacific
coast region plus Hawaii and Alaska, although homes in that region
by far had the farthest to rise, having dropped 16% in the last 12
months. California markets were among the fastest rising before the
housing bubble burst.
The laggard was New England with a 0.5% increase from the first
quarter. However, prices there have fallen just 3.2% in the past
four quarters.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com