US house prices jump

The US has seen the average cost of a house jump during April, according to a new report.

There was a rise of more than 12 per cent in the cost of single-family home prices across 20 cities in April compared to the same month in 2012, the latest Standard & Poor's/Case Shiller index indicated.

Month-on-month, the index was found to be up by 2.5 per cent in April compared to March.

David Blitzer, chairman of the index committee, explained the data is a further sign that the recovery in the US is starting to gather pace, reports BBC News.

"Last week's comments from the Fed and the resulting sharp increase in Treasury yields sparked fears that rising mortgage rates will damage the housing rebound", said Mr Blitzer.

The US Federal Reserve has indicated it could start reducing its asset purchasing scheme as early as this year and intends to wind it down completely by the middle of 2014 as long as its predictions for the economy turn out to be accurate.

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