On September 22, the FHA (Federal Housing Agency) reported in a government index the increase over figures from June of this year. It was noted that June's percentages were revised down to 0.1% from 0.5%. Index ratings continue to be just over 4% under 2008 levels and ten point five percent below their peak of April 2007. The index numbers are obtained from loan either guaranteed by or owned by Freddie Mac and Fannie Mae.
This index has shown declines which are less than other market measurements because this index does not include some subprime loans which have since fallen into foreclosure and some of the most expensive higher-end homes.
An economist with Capital Economics, Paul Dales states that this index shows evidence that the three-year decline in home prices has ended. He also added that the ongoing activity of foreclosures and the unstable economic climate could suggest that any further gains would be modest at best.
There is uncertainty in the market as to how long the Federal Reserve will be able to keep interest rates low. Also, government leaders have yet to decide whether or not to extend the current $8000 first-time buyer credit which is set to expire on November 30.
Standard & Poor's/Case Shiller national index recently reported its first quarterly increase in the past 3 years throughout the April through June quarter of the year. The Federal Reserve is hopeful that the market has officially hit bottom and is ready for an upturn. There are however, economists out there who continue to warn that home prices could drop again in 2010.
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