Source: Alejandro Lazo, Los Angeles Times ( Free Registration )

A closely watched national index showed Tuesday that home prices rose in June, the last month that a federal tax credit probably boosted sales. Many experts predict a drop in values in coming months without the popular government stimulus.

Prices of previously owned single-family homes rose a modest 1% in June over May and 4.2% over June 2009, according to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas.

Read Full Article: Home prices rise in June, but a drop may be looming