The HPI (Housing Price Index) measures the change in the purchase price of homes with mortgages backed by Freddie and Fannie in the previous month. The HPI was worse than the forecasted number of -0.1% coming in at -0.5%. The HPI is looked at as an indicator of economic health as higher prices attract investors and spur industry activity. We need to realize that our house is not an investment, it is a place to live ( I see this as faulty thinking). It is no shock that prices came down as inventory on the market is very high and increasing due to foreclosures, failure to turn over those foreclosed properties and continued construction of new homes that are not needed.
ALERT: Revisions in home prices in June were much worse than what was reported for June (reported was -0.3% and revised was -1.2%)
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