Home Price Index Slips in August

WASHINGTON (TheStreet) -- Home prices dipped in August after three straight months of gains.

The Federal Housing Finance Agency announced today that prices slipped 0.3% during the month and are 3.6% below last year's levels. This, however, is still well above the 10.7% decline seen in April 2007.

The agency's index is based on loans owned or guaranteed by Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote).

Prices rose in four of the nine regions, showing the biggest gains in the Pacific and Mountain regions.

Shares of homebuilders are in the red following the report. KB Home (KBH Quote) is slipping 1.2% to $14.86, Lennar(LEN Quote) is down 1.7% to $13.45, MDC(MDC Quote) is falling 1.4% to $34.47, Toll Brothers(TOL Quote) is inching down 0.9% to $18.51 and Pulte Homes(TOL Quote) is sinking 1.5% to $9.65.

-- Reported by Jeanine Poggi in New York

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