OFHEO: Home Price Growth Slowest Since '99

Home prices rose 1.17% in the second quarter, the slowest growth rate since the end of 1999, according to figures released by the Office of Federal Housing Enterprise Oversight.Based on the second-quarter reading, house prices grew at an annualized rate of 4.68%. OFHEO Director James Lockhart said in a statement that the housing market "is cooling in a very significant way." Compared with those of a year earlier, home prices grew at a 10.06% rate. Greenwich Capital analyst Stephen Stanley said, "Looking ahead, home price appreciation will undoubtedly continue to slow, and we would not be shocked to see a quarter or two where the annualized growth rate is measly or even flattish."