Home Prices Rise for 8 Consecutive Months

The FHFA monthly index is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The index is 6.4% below its April 2007 peak, and it is roughly equivalent to its level in April 2005.

For the past 12 months, gains have been greatest in the Pacific states, up 7.2%, and the least in the Middle Atlantic states, which are up 1.6%. In the 12 months between July 2012 and July 2013, prices rose more than 20% in the Pacific region and nearly 4% in the Middle Atlantic region.

The month-over-month July gain equaled the smallest this year. Price gains were highest in the first two months of 2014.

The consensus estimate for July called for an increase of 0.4%. The slowing pace of price hikes should provide some help for first-time home buyers, provided that mortgage lending does not tighten.

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