U.S. home prices rise 1.3% in August WASHINGTON (MarketWatch) -- U.S. home prices rose 1.3% in August, the smallest monthly gain since March, as 16 of 20 cities tracked by a gauge from S&P/Case-Shiller saw slower growth, according to data released Tuesday. "Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts," said David Blitzer, index committee chairman at S&P Dow Jones Indices. After seasonal adjustments, home prices in August rose 0.9%. On a year-over-year basis, home prices grew at a blistering 12.8% in August, the fastest annual pace since early 2006, as 13 cities saw double-digit annual growth. Home prices in August were about 20% below a 2006 peak.