U.S. home prices declined by an annualized 0.4 percent during the second quarter of 2008, following a 10.8 percent annualized drop in the first quarter, according to the latest Conventional Mortgage Home Price Index Purchase-Only Series from Freddie Mac, which excludes refinanced transactions in its calculations.

“While U.S. home value indexes continued to decline, an encouraging sign has been the significant moderation in the rate of decline of the Purchase-Only series,” said Frank Nothaft, Freddie Mac vice president and chief economist. “After falling sharply over the prior two quarters — more than a 10 percent annualized drop — home value depreciation slowed substantially to only a 0.4 percent annualized rate. While we expect to see further declines in average U.S. home values throughout this year and into 2009, we will be watching for signs of stabilization in indicators of real housing activity, such as a leveling off in home sales and for-sale inventories.”

Fannie Mae announced a management restructuring last Wednesday, resulting in Fannie’s chief financial officer and two other top executives leaving the company, and three current executives being promoted in their places. The new management team is effective immediately, and will oversee and implement the company’s capital management and credit-loss reduction plan.

News stories that Fannie Mae and Freddie Mac may not need a government bail-out also calmed investor fears. Fannie Mae completed a $2 billion sale of short-term debt last week, while Freddie Mac sold $1 billion in five-year debt on Tuesday.

A new study from the Urban Institute and the U.S. Dept. of Housing and Urban Development (HUD) says there are significant disparities among borrowers, particularly minorities, and what they pay for closing costs when buying a home, including those with identical credit scores, loan terms, and mortgage amounts.

“The core problem is that too many Americans sign a mountain of documents they don’t understand and pay thousands of dollars for services that they’ve probably never heard of,” said Brian Montgomery, HUD assistant secretary. “This report proves that the more informed you are, the less you pay. Our common goal should be to increase competition and transparency, and to help take the mystery out of buying a home.”

According to the study, loan fees can vary by thousands of dollars from borrower to borrower; charges and title fees vary considerably state-to-state; and some minorities pay up to $400 more in closing costs than non-minority borrowers in some markets.

California consumers’ outlook on current and future economic conditions and their plans for future spending fell sharply during the second quarter on concerns over mounting gasoline prices, job security, and the broader economy, according to the A. Gary Anderson Center’s California Composite Index of Consumer Sentiment.

“Continued housing market woes, high gasoline prices, concerns about the job market, and a volatile stock market are negatively affecting consumers’ expectations about current and future economic conditions,” the report states.

Roughly 183,000 at-risk homeowners were provided loan workouts in April, 23,000 more than in March, according to a new report from HOPE NOW, a private sector alliance of mortgage servicers, counselors, and investors working to prevent home foreclosures across the country. The April numbers represent the highest number of workouts provided through HOPE NOW since the program was launched in July 2007, according to the alliance.

“These numbers clearly demonstrate that we are succeeding at helping homeowners avoid foreclosure and stay in their homes,” said HOPE NOW Executive Director Faith Schwartz. “Foreclosure benefits no one: the borrower, community, lender, and investor all lose. HOPE NOW has every incentive to help troubled homeowners hold on to their homes, and the alliance will continue to do everything possible to reach and help as many as possible.”

Volatile organic compounds (VOCs) are emitted by a wide array of household products, some of which may have short- and long-term adverse health effects. Examples include: paints and lacquers, paint strippers, cleaning supplies, pesticides, building materials and furnishings, office equipment such as copiers and printers, correction fluids and carbonless copy paper, graphics, and craft materials, including glues and adhesives, permanent markers, and photographic solutions.

Concentrations of many VOCs may be 10 times higher indoors than outdoors. Many green-minded consumers are using low VOC products in their remodeling projects and may ask if a home for sale has incorporated low VOC products.

The Consumer Price Index for All Urban Consumers(CPI-U) increased by an unexpectedly lower margin of 0.2 percent in April according to today’s report from Bureau of Labor Statistics of the U.S. Dept. of Labor.

The index for petroleum-based energy fell 1.6 percent, offsetting the 2.5 percent increase in the index for energy services. But food prices remain a chief concern: the food index rose 0.9 percent in April; and the food at home index increased 1.5 percent.

NeighborWorks America, a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts, has formed a new partnership with the Federal Reserve designed to help provide assistance to local communities nationwide who are trying to assess housing conditions in their areas, and assist local governments and non-profit organizations in their efforts to address the increase in foreclosures.

“We are excited by the opportunity this collaboration represents,” said Ken Wade, CEO of NeighborWorks® America. “Working together with the Federal Reserve to better understand the impact of foreclosures on communities and to enhance the ability of local residents mitigate this crisis is an important step toward stabilizing the housing market.”