The S&P/Case-Shiller home-price indexes, a closely watched gauge of U.S. home prices, saw prices fall further in the first quarter amid the continued deterioration of home prices as the subprime-loan meltdown weighs on the sector.

Meanwhile, U.S. new-home sales rose in April.

In the first quarter, the Case-Shiller indexes showed home prices across the country fell 14% from a year earlier, representing the largest drop in the 20-year history of the indexes. From the fourth quarter, prices fell 6.7%.

“The steep downturn in residential real estate continues,” David Blitzer, chairman of S&P’s index committee, stated. He added, “There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path.”

According to the indexes, released by ratings firm Standard & Poor’s, home prices in 10 major metropolitan areas fell 15% in March from a year earlier and 2.4% from February.

In 20 major metropolitan areas, home prices dropped 14% from a year earlier and 2.2% from February.

Meanwhile, sales of single-family homes increased by 3.3% last month to a seasonally adjusted annual rate of 526,000, the U.S. Commerce Department said today. Year over year, new-home sales were 42% lower than the level in April 2007. Economists had forecast an April sales rate of 533,000.

Separtately, a new report showed that U.S. consumer confidence weakened more than expected and for the fifth straight month in May.

The U.S. Conference Board, a private research group, said that its index of consumer confidence for May fell once again as consumers indicated their present situation and outlook for the future were both bleak.

The confidence index now stands at 57.2, down from a slightly revised 62.8 in April and compared with economists’ expectations for a reading of 60.0 in May.

“The Consumer Confidence Index now stands at a 16-year low,” said Lynn Franco, director of the Conference Board Consumer Research Center. “Weakening business and job conditions coupled with growing pessimism about the short-term future have further depleted consumers’ confidence in the overall state of the economy.”

The present situation index, a gauge of consumers’ assessment of current economic conditions, plummeted to 74.4 this month from an upwardly revised 81.9 in April. The expectations index dipped to 45.7 in May from 50.0 in April.