U.S. home prices rose 1.7% in May, with buyers during the key spring sales market bidding against each other for a relatively low supply of homes, according to a report released Tuesday by CoreLogic, an Irvine, Calif.-based analysis firm. Year-over-year growth for home prices hit 6.3% in May, the strongest result in 10 months. "Mortgage rates on 30-year fixed-rate loans remained below 4% through May, helping to fuel home-purchase activity," said Frank Nothaft, CoreLogic's chief economist. "Our homes-for-sale listing data shows that markets with high demand and limited supply, such as San Francisco, are recording double-digit appreciation rates over the past year." Gains were "fairly widely distributed across the country," while 10 states, including the likes of Texas and New York, hit record highs for home prices in May. In April eight states reached record highs.
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