Freddie: Home Prices Up 4.6% in 2Q

Home prices increased at an annualized rate of 4.6% nationwide in the second quarter, down from a revised rate of 5.0% in the first quarter, according to the Conventional Mortgage Home Price Index released by Freddie Mac.The index showed that the New England states recorded the largest gains in home prices in the second quarter, rising at an annualized rate of 6.9%. The Pacific states followed with a 6.3% annualized growth rate, and the South Atlantic states of Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia, along with the District of Columbia, finished third with a 5.9% growth rate. "The second quarter saw the lowest mortgage interest rates in 45 years and corresponding record high home sales," said Frank Nothaft, Freddie Mac's chief economist. "Growth in home prices has slowed over the past two years from the 8% to 8 1/2% growth we saw in 2001 to a more sustainable growth rate of around 5% to 6% on an annual basis." The index was jointly developed by Freddie Mac and Fannie Mae. Freddie Mac can be found online at http://www.freddiemac.com.