U.S. Home Prices Jump Most in 6 Years

by Christopher Freeburn | July 30, 2013 10:22 am

homeForSale U.S. Home Prices Jump Most in 6 Years[1]On Tuesday, a fresh report showed continued signs of strength[2] in the U.S. real estate market.

In May, home prices in 20 cities measured by the Standard & Poor’s/Case Shiller index rose 12.2% over the prior year. That marked the largest yearly price increase since March 2006, the Associated Press notes.

The index found year-over-year home price gains in all 20 metropolitan markets. Prices also rose in May compared to April.

Since May, the average interest rate on a 30-year mortgage has risen by one percentage point, hitting 4.51%, its highest reading in two years.

Despite the news, homebuilder stocks were mixed in Tuesday morning trading. Shares of Ryland Group (RYL[3]) surged more than 2%, while shares of Toll Brothers (TOL[4]) rose modestly and D.R. Horton (DHI[5]) fell almost 1%.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/homeForSale.jpg
  2. showed continued signs of strength: http://hosted.ap.org/dynamic/stories/U/US_HOME_PRICES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-07-30-09-02-06
  3. RYL: http://studio-5.financialcontent.com/investplace/quote?Symbol=RYL
  4. TOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOL
  5. DHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=DHI

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