Biggest drop in home prices in 25 years

A recent Freddie Mac survey revealed that housing values have fallen 1.3 percent in the whole nation in the third quarter of 2007. This is the biggest quarterly drop in the housing values in 25 years.

In the “Survey of home purchases and mortgage refinance appraisals,” Freddie Mac found out this fact which may intensify the problems already faced by the homeowners in the whole country.

The Pacific region was hurt most where the rates fall by an annualized 5.8 percent rate of decline. On the other hand West South Central recorded a gain of 4.9 percent. The rise in this area may be because of the energy sector present in the area.

The survey found that the home prices are falling in seven of the nine regions. The same rates are falling in 25 states in the country.

Freddie Mac’s index is made out of the sales prices of the home which were sold. In case of the refinanced home, it took into account the appraised value of the house.

The buying is not happening because of the hard mortgage loan rules and apprehension on the part of the lending banks and financial institutions.

So this is another part of the ongoing home and real estate problem that is creating havoc in the country. People are already afraid of losing their home. In such a condition, this report is making the condition look worse. Keep notice of the situation. We will inform you more about it soon.