Fannie Mae/Freddie Mac Index: Home Prices Continue to Fall

New government figures show that home prices fell 0.6% in January after a 2% drop in December, a sign that the housing market is far from being on a steady road to recovery. According to a home price index compiled by the Federal Housing Finance Agency, prices fell in six geographic regions but rose in two: a 2% gain for the Mountain region, and a 0.4% improvement in the West North Central. Prices in the Pacific region remained unchanged. Over a 12 month-period ending in January, home prices are down 3.3% based on residential loans purchased in the secondary market by Fannie Mae and Freddie Mac. The December drop was revised downward from 1.6%, the GSE regulator said. Since January 2009, prices have dropped 3.3% to a seasonally adjusted 194 index value. The FHFA HPI is down 13.2% from the peak in April 2007.