The S&P/Case-Shiller home price index increased 4.6% in January, in line with expectations, after a 4.4% gain in December.

December's figure was revised down from a 4.5% rise.

Chairman of the index committee at S&P Dow Jones Indices David Blitzer said that the increase was driven by low interest rates and strong consumer confidence in the U.S.

"Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback," he added.

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.