With the 20-city composite index falling below its April 2009 low, 12 of the cities surveyed for the index marked new index lows in the current housing cycle.

FORBES: Case-Shiller Home Price Index Officially Double-Dips, Goldman 'Cautiously Optimistic'

Investors have already marked down stock index futures and the dollar index has rebounded by 0.3% to stand at 74.11 after a poor start to the week.

FORBES: Euro GDP And U.S. Housing Hammer Stocks, Boost Bonds And Safe Plays

The gain marked the best daily performance for the index in almost a month.

WSJ: Europe Stocks Rise on ECB Comments