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) -- 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) and

Freddie Mac

( FRE).

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) - Get KB Home Report

is slipping 1.2% to $14.86,


(LEN) - Get Lennar Corporation Class A Report

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is down 1.7% to $13.45,


(MDC) - Get M.D.C. Holdings, Inc. Report

is falling 1.4% to $34.47,

Toll Brothers

(TOL) - Get Toll Brothers, Inc. Report

is inching down 0.9% to $18.51 and

Pulte Homes

(TOL) - Get Toll Brothers, Inc. Report

is sinking 1.5% to $9.65.

-- Reported by Jeanine Poggi in New York

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Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.