July was the second consecutive month of decline following gains in the spring. The FHFA House Price Index declined an additional 1.2% in June. The declines were widely anticipated following the end of the federal home buyer tax credits earlier in the year.
For the twelve months ending in July, the index has declined 3.3%. The index now stands 13.8% below its peak in April 2007.
The index is based on the prices of homes financed or bundled by federal housing agencies.