Credit unions have reported lowmortgage loan demand so far this year. However, at least a fewpeople are purchasing and financing houses, and paying higherprices for them too, according to data released Tuesday by theFederal Housing Finance Agency.

The FHFA House Price Index rose 0.5% in January, the 23rd out 24month it did so, a run stretching back to February 2012, theregulator said. Home prices rose 7.4% from January 2013 to January2014, FHFA also said.

The agency, which regulates Fannie Mae and Freddie Mac,calculated the index value using home sales price information frommortgages either sold to, or guaranteed by, Fannie Mae and FreddieMac.

The FHFA reported the U.S. home price index is 8.0% below itsApril 2007 peak; nationally, average home prices are roughly thesame as they were back in May 2005.

For the one month of December 2013 to January 2014, the WestSouth Central part of the U.S. saw prices decline by 0.3%, whilethey rose 1.3% in the Middle Atlantic states.

The 12-month changes were all positive ranging from a gain of3.2% in the Middle Atlantic states to a 14% price increase in thePacific region.

Andrew Leventis, principal economist at the FHFA, laid some ofthe blame for higher prices on tighter inventory in many parts ofthe country.

“Inventory conditions are tight, to be sure,” Leventis said.“While multiple factors are likely responsible, some of thetightness is attributable to the fact that many homeowners arestill underwater on their mortgages and thus would have difficultyselling their homes.”

In other words, while prices are rising, in some areas they havenot yet risen to the point where they would shake more inventoryfree.

Investors have purchased many foreclosed or otherwisefinancially distressed properties and rented them, taking them offthe market and further reducing the numbers of available homes.

Leventis said tight inventory could mean lenders will continueto see lower mortgage demand in 2014. However, he cautioned thatpremise was speculation, not a projection.