Home prices posted their biggest annual gains in seven years in August, but the pace of month-over-month gains slowed in most markets tracked by the S&P/Case-Shiller 20-City Composite index.

The S&P/Case Shiller 20-City Composite showed home prices rising by 12.8 percent from a year ago, and by 1.3 percent from July to August. All 20 cities reported annual gains, with 13 showing double-digit price appreciation. The 20-city composite posted the strongest year-over-year growth since February, 2006.

If no adjustment is made for seasonal factors, month-over-month gains for the 20-city composite peaked in April.“Since then home prices continued to rise, but at a slower pace each month,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.

“This month 16 cities reported smaller gains in August compared to July.”Blitzer cited recent increases in mortgage rates and fewer mortgage applications as two factors in these shifts. When adjusted for seasonal factors, the 20-city composite index showed stronger month-over-month growth in August (0.9 percent) than in July (0.6 percent).

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