U.S. home prices rose a seasonally adjusted 0.3% in July, a government agency reported Tuesday, as some of the worst-hit housing markets in the country showed signs of rebounding.

Still, prices fell 4.2% for the 12 months ended July, the Federal Housing Finance Agency reported. The agency also said it revised the 0.5% price increase for June downward to a 0.1% price rise.

-Jessica Holzer, Dow Jones Newswires; 202-862-9228; jessica.holzer@dowjones.com