June home prices up 12.1% from year ago

Julie C. Nichols General

USA Today – Julie Schmit

Home prices were up sharply in June but the pace may be slowing, a widely watched housing index reported Tuesday.

June home prices were up 12.1% from a year earlier and all 20 cities in the index posted gains on a monthly basis, shows the S&P Case-Shiller 20-city index.

But only six cities saw prices rising faster in June compared to 10 in May.

With interest rates rising to almost 4.6%, "home buyers may be discouraged and sharp increases may be dampened," says David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

The seasonally adjusted numbers show the trend of slowing price gains. Month over month, prices were up 0.9%. That’s the slowest increase since November 2012.

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