Home prices gain, but 'ominous' signs for housing market

Home prices showed modest gains in the second quarter of this year, but there are "ominous" signs ahead for the housing market, according to the S&P/Case-Shiller index of home prices.

The report showed that home prices increased 4.4 percent in the quarter and were 3.6 percent above the level last year.

"Housing prices have rebounded from crisis lows, but other recent housing indicators point to more ominous signals as tax incentives have ended and foreclosures continue," the report said.

The Obama administration has defended its record to boost the housing market, in part by pointing to stability in home prices. But recent data showed deep plunges in the sale of existing and new homes. Meanwhile, foreclosures continue to mount across the country. Millions of homes are worth less than the value of borrowers' loans — which means the borrower has negative equity.

Home prices are roughly 29 percent below their peak from the summer of 2006.

Minneapolis, San Diego, San Francisco and Washington have posted double-digit increases from their lowest home price levels.