Home prices continue to fall in Twin Cities

Home prices in the Twin Cities fell about 1 percent in September compared to the month before, according to Standard & Poor's/Case Shiller Index.

Compared to the same period a year ago, Twin Cities prices fell about 7 percent — nearly twice as big a drop as the one recorded in the Case Shiller 20-city composite index.

However, the annual rate of decline in Twin Cities home prices in September did moderate some from the month before.

Nationally, home prices are back to levels last seen in the first quarter of 2003.

A separate report from CoreLogic released Tuesday shows that about 17 percent of all residential mortgages in Minnesota were underwater in the third quarter, meaning borrowers owed more on their mortgages than their homes were worth. Nationally, about 22 percent of homes were underwater in the same period.