Home prices increased at an annualized rate of 0.4% nationwide in the second quarter, down from a revised rate of 2.0% in the first quarter, according to the Conventional Mortgage Home Price Index Classic Series released by Freddie Mac.The West South Central states of Arkansas, Louisiana, Oklahoma, and Texas recorded the biggest price increases, with a 5.1% annualized growth rate, Freddie Mac said. The East South Central states of Alabama, Kentucky, Mississippi, and Tennessee experienced the second-highest annualized gains, with a 4.9% rate, while the New England states declined the most, at 2.2%. "The CMHPI Classic Series [which includes home purchases and refinancings] recorded five regions with falling average home values in the second quarter," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "The East North Central states are still plagued by manufacturing employment losses, but the South Atlantic, Middle Atlantic, New England, and Pacific regions are all feeling the hit of the housing slump with otherwise fairly healthy economies. These are also the states with the highest housing costs and that had the largest gains in home values over the past five years." The index was jointly developed by Freddie Mac and Fannie Mae. Freddie Mac's website address is http://www.freddiemac.com.

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