Aug. 27 - A new survey shows home price gains slowed in June and one of the survey's co-founders says the housing market has gotten very speculative. Hoda Emam reports.
Mortgage rates may be up- but home prices are still going up too. The S&P/Case-Shiller Price Index for June showed prices in their 20 city composite up 2.2 percent in June compared to May and up 12.1% from a year ago. It's more proof the housing market continues to recover - and help power the overall U.S. economy. The biggest hikes: San Francisco and Las Vegas- on average it will cost about 25% more for the same house than it would have a year ago. But survey co-founder and Yale professor Robert Shiller is skeptical about those kind of spikes. He says, "none of this is for real. The housing market has gotten very speculative and it goes through big cycles." And while the overall report shows that housing prices are on a rise- David Blitzer, chairman of the index committee at the S&P Dow Jones Index has a warning, he says "with the interest rates rising to almost 4.6 percent, home buyers may be discouraged and sharp increases may be dampened." He adds that other housing news is positive but not as robust as well. Data last week showed sales of new homes fell 13 percent.