U.S. Home Prices Rise at Slowest Pace in 20 Months

Ken Blevins/Wilmington Star-News via AP WASHINGTON -- U.S. home prices in July increased at the slowest pace in 20 months, reflecting sluggish sales and a greater supply of houses for sale.

The Standard & Poor's/Case-Shiller 20-city home price index rose 6.7 percent in July from 12 months earlier. That's down from an 8.1 percent gain in June and the smallest increase since November 2012.

Sales of existing homes have been weak for most of this year. They picked up over the summer but then fell in August and are 5.3 percent lower than a year ago. The slowdown has occurred partly because investors are pulling back from the housing market. Meanwhile, many would-be buyers are unable to obtain a mortgage, particularly first-time buyers. Nineteen of the 20 cities in the index reported lower annual gains than in June. And a new broader index of nationwide home prices compiled by S&P rose just 5.6 percent.