Home Prices Rise in Most Major US Cities

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Other measures of home prices have also improved. But the S&P/Case-Shiller index uses a three-month moving average that could take longer to signal greater improvement.

"It might be the last of the closely followed home price figures to reflect a turning point," said Jonathan Basile, an economist at Credit Suisse.

In April, sales of both previously occupied homes and new homes rose near two-year highs. Builders are gaining more confidence in the market. They're breaking ground on more homes and requesting more permits to build single-family homes later this year.

Long-term mortgage rates have never been lower. The average rate on the 30-year fixed mortgage fell to 3.78 percent last week, the lowest since long-term rates began in the 1950s.

The pace of home sales remains well below healthy levels. Economists say it could be years before the market is fully healed.

Many people are having difficulty qualifying for loans. Or they can't afford larger down payments required by banks. Some would-be buyers are holding off because they fear prices could keep falling.

A better job market has made more people at least open to buying. Employers have added 1 million jobs in the past five months, though the gains slowed in April and March. The unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April.

Economists estimate that employers will have added 160,000 jobs this month. The government will issue the May jobs report on Friday.

 

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