Government index shows record 4.8 percent decline in US home prices in May from a year ago

WASHINGTON: A government report says U.S. home prices fell a record 4.8 percent in May from the same month last year.

The Office of Federal Housing Enterprise Oversight also says prices, on a seasonally adjusted basis, fell 0.3 percent from April to May. The index is down almost 5 percent from its peak in April of last year.

OFHEO oversees the government-sponsored mortgage-finance companies Fannie Mae and Freddie Mac.

The government index is calculated using mortgage loans bought or guaranteed by Fannie or Freddie.

Legislation enacted in February temporarily raised the limit to as much as $729,750 in high-cost areas such as California and the Northeast. Those loans are included in the index.

Published: July 22, 2008

Source: International Herald Tribune

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