WASHINGTON (8/28/13)--U.S. home prices rose in June, although at a slower pace than in May, an indication that the rate of improvement in the housing market could be slowing (MarketWatch, The New York Times and Bloomberg.com Aug. 27).
The S&P/Case Shiller composite index of home prices in 20 metropolitan areas increased 0.9% on a seasonally adjusted basis. Prices gained 2.2% on a non-adjusted basis.
On an annual basis, home prices in all 20 cities rose, topped by a 24.9% spike in Las Vegas, followed by a 24.5% increase in San Francisco.
However, only six cities saw prices increase in June at a faster pace than in May--when 10 cities saw prices rise, the Times said.
Escalating property values are bolstering household wealth, which helps fortify the consumer spending that comprises 70% of the U.S. economy, Bloomberg said.
However, a leap in mortgage rates suggests home sales and refinancing could be restrained--and that would make it harder for consumers to tap into home equity, Bloomberg added.