U.S. home prices jumped 12.4 percent in July from a year earlier, reflecting a housing market that's increasingly favoring sellers amid a tight supply of available homes for sale.

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Americans cut back sharply in July on their purchases of new homes, a sign that higher mortgage rates may weigh on the housing recovery.

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Sales of existing homes in Wisconsin increased 17.3 percent from July 2012 to July 2013.

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Buoyed by an improving housing market, President Barack Obama on Tuesday proposed a broad overhaul of the nation's mortgage finance system, including winding down government-backed Fannie Mae and Freddie Mac. He declared that taxpayers should never again be left "holding the bag" for the mortgage giants' bad bets.

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The Wisconsin Department of Revenue is forecasting that the state's economy will grow at a moderate pace this year, with 31,000 jobs added by the end of the year.

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U.S. builders started work on fewer homes and apartments in June, though the slowdown wasn't enough to suggest the housing recovery is faltering.

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U.S. homebuilders are feeling more optimistic about their home sales prospects than they have in more than seven years, a trend that suggests home construction will accelerate in coming months.

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Home prices in the Milwaukee area are forecast to increase throughout the remainder of 2013.

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U.S. home prices jumped 12.1 percent in April from a year ago, the most since March 2006. More buyers and a limited supply of available homes have lifted prices in most cities across the country, a sign of a broad-based housing recovery.

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Sales of new homes rose in May to the fastest pace in five years, a solid gain that added to signs of a steadily improving housing market.

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