US home prices witness modest rise, weighing on affordability

US home prices rose at a steady pace in January, pushing prices up at a faster pace than wages and putting more homes financially out of reach for would-be buyers.

The Standard & Poor's/Case-Shiller 20-city home price index rose 4.6 percent in January compared with 12 months earlier, S&P said on Tuesday. That is up from growth of 4.4 percent in December.

Few Americans have listed their homes for sale, and the tight supply has kept prices higher. The increases have eclipsed earnings, making it more difficult for buyers to save for a down payment and afford a monthly mortgage.