Home Values Rise

Freddie Mac's quarterly report on home prices shows they rose for the second consecutive quarter in all but two of the regions in tracks.

Nationwide, the average quarter-over-quarter increase in third quarter prices was 0.9 percent. The Pacific region saw quarterly prices up 3.9 percent, the biggest gain in the nation. Prices in New England and the Mountain region were the only prices to register a decline.

Prices in the South Atlantic region, which includes D.C., Maryland and Virginia, were up 1.1 percent.

The 0.9 percent third quarter increase in prices followed a revised 2 percent increase in the second quarter.

"The home-price gains of the past two quarters reflect improving existing home sales over that period. Sales volume was up 15 percent between the first and third quarters of this year," said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft.

"The lowest fixed-rate mortgage rates in a half century, lower house prices, incentives to encourage first-time buyers and loan modification efforts to stem foreclosures have worked together to support sales and reduce the inventory of unsold homes."

Nationwide, third quarter home prices were still down 3.9 percent from the same quarter a year earlier.