U.S. home prices rose in December from a year earlier at the fastest pace in 11 months, as prospective buyers bid against each other for a limited supply of available property.
The Standard & Poor's CoreLogic Case-Shiller 20-city home price index increased 5.6 percent, the most since January 2016.
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The price gain reflects the healthy pace of home sales, which increased in January to the fastest level in a decade. Steady job gains and growing consumer confidence have encouraged more people to take the plunge and look for a home.
Still, mortgage rates have risen since last fall, and with prices also increasing, homes are becoming less affordable. A measure of pending home sales declined in January, a sign that final sales may soon fall as well.