Home prices up 12.1 percent; biggest jump in seven years

Of the dozen, only Phoenix and Tampa showed a slowdown in price increases. Still, Phoenix has posted 12 consecutive months of double-digit growth.

“Last week’s comments from the Fed and the resulting sharp increase in Treasury yields sparked fears that rising mortgage rates will damage the housing rebound,” said David Blitzer, chairman of the index committee.

“Home buyers have survived rising mortgage rates in the past, often by shifting from fixed rate to adjustable rate loans,” he said.

{mosads}A positive within the market is that banks appear to be more willing to lend, Blitzer noted.

The index measures prices compared with January 2000.

In a separate report, the Federal Housing Finance Agency (FHFA) reported on Tuesday that housing prices were up 0.7 percent on a seasonally adjusted basis in April. 

In addition, the previously reported 1.3 percent increase in March was revised upward to a 1.5 percent increase.

More good news for the housing market emerged in new home sales, which rose 2.1 percent in May, the fastest pace in five years. 

Sales last month were a seasonally adjusted annual 476,000, the highest level since July 2008, but that is still below the 700,000 rate that economists say reflects a healthy market, the Commerce Department reported Tuesday.