One home price index rose for the first time in three years Tuesday, but foreclosures still pose a hurdle to market stability.
Cape Coral, Fla., not long ago one of the foreclosure capitals of America, is now seeing a rebound as home prices hit once-in-a-generation lows.
Sliding prices helped push sales up for the third straight month in June. But foreclosures are expected to rise again.
But unsold homes remain a big challenge for the US economy.
Higher rates led to a 16 percent drop in mortgage refinancing last week.
More properties went on the market in April. Anxious sellers – including banks – boosted the inventory of unsold homes to 10.2 months' worth.