WASHINGTON - Compared with the first quarter, U.S. home prices rose in the second quarter at the slowest pace in nearly 13 years, according to government data that provides fresh evidence of the housing market's problems.

The Office of Federal Housing Enterprise Oversight on Thursday said in its quarterly report on the housing market that nationwide home prices increased 0.1 percent from the first quarter to the second quarter.

The agency's index of U.S home prices increased 3.2 percent in the second quarter from year-ago levels, the smallest year-over-year price growth in 10 years.

'House prices were basically flat in the second quarter despite tightening credit policies, rising foreclosure rates and weakening buyer sentiment,' agency Director James B. Lockhart said in a statement. 'Significant price declines appear localized in areas with weak economies or where price increases were particularly dramatic during the housing boom.'

Nevada, Michigan, California, Massachusetts and Rhode Island all had price drops from year-ago levels. But there were significant year-over-year price increases in Utah, Wyoming, Montana, New Mexico and Washington state.

The agency's index is calculated based solely on loans purchased or turned into mortgage securities by the government-sponsored mortgage giants, Fannie Mae and Freddie Mac.