Home values continued to rise in the second quarter of 1999, increasing at an annualized rate of 5.5 percent nationwide.
According to Freddie Mac's Conventional Mortgage Home Price Index, last quarter's increase continued the yearlong rise as home appreciation increased 5.3 percent from the second quarter of 1998 to the second quarter of 1999.
The West North Central states led the nation in appreciation growth with a 9.9 percent increase, while the New England states came in second with an 8.9 percent rise.
The smallest increase was registered by the East South Central states with a 2.7 percent gain.
The South Atlantic division, which includes Maryland and Washington, posted an annualized increase of 3.7 percent.
"The recent rise of interest rates is expected to dampen some of the enthusiasm that housing has enjoyed over the past year, but 1999 could well be the second consecutive year of record performance," said Amy Crews Cutts, senior economist at Freddie Mac.