The FHFA home price index beat expectations, rising 1% in July. This beat expectations for a 0.8% rise.

This was the eighth straight monthly rise in home prices. Home prices were up 8.8% on the year, and down 9.6% from the April 2007 peak.

June's reading was unchanged at a 0.7% rise.

Economists have for some time expected home prices to cool in the second half of the year. Paul Diggle at Capital Economics also expects new home prices to slow more than existing home prices.

The home price index is calculated using home sales price information from mortgages either sold to or guaranteed by Fannie Mae and Freddie Mac.

Here's a look at the seasonally adjusted and unadjusted home prices plotted on the same chart:

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SEE ALSO: Here Are 3 Reasons Why New Home Prices Will Slow By More Than Existing Home Prices