BLITZER: We're seeing is more evidence that the housing market is coming back, coming back strong. A survey released this morning shows housing prices jumped almost 12.5 percent in July from the year before. Christine Romans is joins us now to explain what's happening. What's happening, Christine?</s>CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: A really big rise again in home prices, Wolf. But when you sift through these numbers -- I want to show you some signs that the rate of that increase is slowing. Let's look at the big picture first. Home prices rose 12.4 percent from a year ago. That's phenomenal. That's the biggest year-over- year increase in seven years. This is the S&P; Case Schiller Composite Home Price Index measure. Look where we've come from. Look at some of the -- wow. Can you imagine that? Look at how much we've come from the bottom in 2009. But we're still off the peak. Now, I want to show you where some of the hardest-hit markets in the housing bust have been doing. Phoenix is up 19 percent from a year ago. Look at Las Vegas, Wolf, up 27.5 percent. These are home prices. The three California markets, Los Angeles, San Francisco, San Diego, all up 20 percent or better. Today's news means that fewer home buyers, homeowners are under water. They no longer owe more on their mortgages than their houses are worth. That's very good news for the overall recovery. What's less positive for the housing market, the fact that mortgage rates have been rising. In fact, mortgage rates, up more than one full percentage point since May. They're still at historical lows, but these higher rates may keep prospective buyers from taking the plunge. What does it mean for home prices altogether? David Blitzer of S&P; says the rate of increases may have peaked. In other words, don't expect 12 percent gains over the next year. Something a little more slow than that -- Wolf?</s>BLITZER: David Blitzer of S&P;, no relation to Wolf Blitzer of CNN.
Housing Market Comes Back Strong.