US home price data reveals mixed picture

[WASHINGTON] Home prices jumped over the past year, according to a new report, but worries are growing over whether the housing market is fading as a bright spot in the economy's murky recovery.

The S&P/Case-Shiller index of home prices in 20 US cities on Tuesday rose 13.3 per cent in September from the same month last year and ticked up 0.7 per cent from August. But the pace of growth slowed in many places. Those gains are also a double-edged sword. Rising values are essential for the approximately seven million Americans whose mortgages are larger than their homes are worth. But housing affordability has suffered as a result, just as interest rates have moved significantly higher.

New regulations slated to take effect in January could also make it more difficult for many potential home buyers to qualify for a loan.