WASHINGTON — U.S. home prices rose slightly in July from a month earlier, according to a government index, further evidence the housing market is stabilizing.

The Federal Housing Finance Agency said Tuesday prices rose 0.3 percent in July from the prior month, but June's price increase was revised down to 0.1 percent from 0.5 percent.

The index is still 4.2 percent below last year's levels and 10.5 percent off its peak from April 2007. It is based on loans owned or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac.

The index has declined less than other housing market measurements because it excludes the most expensive homes and some of the subprime loans that have fallen into foreclosure.

NEW DELHI — Ford will manufacture a low-cost compact car in India from early next year, the automaker said today, as it seeks to boost sales in fast-growing Asia.The Figo, which is Italian slang for cool, will initially be for sale in India but there also are plans to export the four-door car to other Asian countries, Ford executives said at a news conference.Production is slated to start in the first quarter of next year.The Figo's price tag wasn't revealed. Ford said it would be "competitive.""This new car will be a game changer," said Michael Boneham, president of Ford India. "It will give us muscle in the heart of the Indian market."Ford plans to double production capacity at its plant in the southeastern city of Chennai to 200,000 vehicles a year.