Fed's Williams says house prices about, or a bit above, 'normal'

SAN FRANCISCO (Reuters) - U.S. house prices are hovering at, or a bit above, a "normal" level, a top Federal Reserve official said on Friday, and further increases could be worrisome.

"The prices are now more or less treading water, San Francisco Federal Reserve Bank President John Williams said, adding that housing construction is still lagging.

(Reporting by Ann Saphir; Editing by Meredith Mazzilli)