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Home Prices Rose 8.4% in June, Mortgage Defaults Continue Drop: LPS

NEW YORK ( TheStreet) -- U.S. home prices rose 8.4% year-over-year in June, according to a report from Lender Processing Services (LPS).

Month-over-month, home prices rose 1.2%.

Nevada led the states, with home prices rising 2.4% from May. Year-over-year, prices in the state are up 27%.

Nineteen of the top four metros measured by the index posted a double-digit increase on an annual basis, led by Las Vegas (up 27%), San Francisco and Sacramento (up 23.9%).

The LPS Home Price Index is just 15% below its June 2006 peak.

The LPS report precedes the S&P Case-Shiller Index that will be released on Tuesday. The LPS report is based on closings in June and represents the prices of non-distressed sales by taking into account the discounts of foreclosures and short sales. According to LPS, the index covers 89% of single-family residential properties in the U.S.

The S&P Case Shiller report for June is based on a three-month moving average -- April, May and June-- is seasonally adjusted and does not account for the impact of distressed sales.

Although the indices have continued to report a strong recovery in home prices, sales activity appears to have moderated in recent months, as rising rates appears to have given buyers reason to pause. Sales of new homes plunged 13.4% in July from June.

In a "First look" report to be released after market hours Monday, LPS also notes that the mortgage delinquency rate continues to decline, although it had a "seasonal" spike in June.

The percentage of loans 30 days or more past due but not in foreclosure fell 4% month-over-month and 9% year-over-year to 6.41% in July.

The percentage of loans in some stage of foreclosure dropped 31% year-over-year to 2.82%, the lowest rate since February 2009.

In total, the number of properties that are either in default or in foreclosure totaled 4.59 million at the end of July.

-- Written by Shanthi Bharatwaj in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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