Homeownership in the U.S. hit new lows during the second quarter, while home prices are slowly on the increase.

According to the Commerce Department, homeownership slipped to 19-year lows with more Americans deciding to rent than own. The Commerce Department's seasonally adjusted rate for homeownership dropped to 64.8 percent, which is the lowest level since 1995's second quarter. The rate's peak was 69.4 percent in 2004 but has been at 65 percent during the first three months of 2013.

The S&P/Case-Shiller Home Price Indices, which measured U.S. home prices in 20 major cities, reported property values increased compared to May 2013, but it is the smallest year-to-year jump since February 2013.

"Home prices rose at their slowest pace since February of last year," said S&P Dow Jones Indices' Index Committee Chairman David M. Blitzer. "The 10- and 20-City Composites posted just over 9 [percent], well below expectations. Month-to-month, all cities are posting gains before seasonal adjustment; after seasonal adjustment 14 of 20 were lower."

According to Blitzer, nine cities saw double-digit increases in May compared to 2013, including Las Vegas with 16.9 percent, San Francisco with 13.2 percent, San Diego with 12.4 percent, Los Angeles with 12.3 percent, Tampa with 10.2 percent and Portland with 10 percent.

"Housing has been turning in mixed economic numbers in the last few months. Prices and sales of existing homes have shown improvement while construction and sales of new homes continue to lag," added Blitzer. "At the same time, the broader economy and especially employment are showing larger improvements and substantial gains."

Bloomberg's survey of 30 economists had projected a year-over-year increase of 9.9 percent. Bloomberg also suggested higher mortgage rates and stricter lending policies have hurt sales.

"This time last year, prices began to grow at double-digit yearly rates; with this in mind, a smaller increase over a higher base is a healthy sign," noted analysts at IHS Global Insight in a note to investors, via CBS News. "Since home price appreciation is closely tied to the economic health of the cities covered in the index, this report suggests that home price growth is fueled by fundamentals, and not a speculative bubble."

The numbers come as the National Association of Realtors (NAR) reported pending home sales slipped 1.1 points in June and 7.3 percent from 2013.

"Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved," said NAR Chief Economist Lawrence Yun. "However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates."

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