Reuters article US home prices are now down 50 per% in 2018 from last year, the Federal Reserve said on Tuesday.
The fall has been driven by a sharp rise in the cost of housing.
In February, prices hit their lowest level in two years as mortgage rates remained high, while interest rates rose.
The Fed expects inflation to slow to 1.2 per cent this year and 2 per cent next year.
The housing market is also expected to rebound, with the housing sector showing strong momentum, with sales up by almost 15 per cent year on year in January and February.
In its quarterly report, the Fed also noted that consumer spending rose to its highest level in three years in the first quarter.