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US Home Prices Fall at Record Pace

A new report shows U.S. home prices fell in May at the fastest pace on record, indicating the U.S. housing slump has worsened.

A closely watched housing index issued Tuesday by a private group, S&P/Case-Shiller, shows prices fell nearly 16 percent in May compared to the same period a year earlier.

The index measures home prices in 20 major cities. The cities of Miami in the southeastern state of Florida and Las Vegas, in the western state of Nevada have posted the steepest declines, with prices in both areas falling more than 28 percent in the past year.

A rising number of foreclosures have hurt home sales and contributed to widespread economic weakness.

A new report shows U.S. consumer confidence rose slightly in July, but remains near a 16-year low.

Economists watch consumer spending closely because it drives about two-thirds of all U.S. economic activity.

Some information for this report was provided by Bloomberg, AP and Reuters.