OFHEO: House Prices Fall to Late 2005 Levels

Here is the latest from the OFHEO House Price Index:

Home prices in July fell 5.3% compared with a year ago, a government agency said Tuesday, and have now receded to October 2005 levels.

The home price index was down 0.6% from June on a seasonally adjusted basis, according to the Federal Housing Finance Agency.

The nationwide decline in home values coupled with reckless lending standards are the driving forces behind rising mortgage defaults and foreclosures, and the credit crisis that has shaken Wall Street to its core.

According to the competing S&P/Case-Shiller Home Price Index, house prices have already fallen to mid-2004 levels.