US house prices rose 12.4 per cent over the 12 months to the end of July, the biggest annual increase since February 2006. The rise was revealed in the latest S&P/Case-Shiller Home Price Index. The index measures single-family home prices across 20 cities, with 13 cities showing a rising annual growth rate.
Last week, the US Federal Reserve decided to maintain its effort to boost the economy, which involves buying US$85 billion worth of assets every month. That scheme, known as quantitative easing, is credited with boosting the housing market last year by driving down mortgage rates to record lows.
However, some analysts said the effect had worn off.
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