BUSINESS

US home prices rise 12. 4 per cent in August from year earlier, but monthly gain slows

10/01/2013 08:02 EDT | Updated 01/23/2014 06:58 EST
WASHINGTON - U.S. home prices climbed 12.4 per cent in August from a year ago, fueled by more buyers bidding on a limited supply of houses.

Real estate provider CoreLogic says prices also increased 0.9 per cent in August from July. But the gain was half the 1.8 per cent increase in July from June. The group said higher mortgage rates and the end of the summer buying season likely slowed the gains.

Prices rose in every state compared with the previous year, and in 99 of the 100 largest cities. Akron, Ohio was the only area to report a decline.

Mortgage rates have risen about a full percentage point since May. Some analysts worry that higher rates could slow home sales.