Home prices increased in January by 1.7 percent from the previous month, which is the first price rise during the past ten months, the Federal Housing Agency reported on Tuesday. The current price rise is, however, 10 percent down from the peak in April 2007. According to the report, the rise in home prices may be the result of a comparatively lower sales in the month of January.
The federal government's gauge of home prices include only those homes which have mortgages backed by Freddie Mac and Fannie Mae. The homes backed by subprime loans and the high-cost mortgages are excluded from the gauge of home prices.