Blog page showing same content as homepage

I’m trying to have my posts post on another page(blog) and my ‘home’ page display as my front page. Both pages have their own templates assigned to them (home for home, blog for blog).

In the Reading settings, I’ve set front page as home, posts page as blog. But when I go to url.com/blog, it displays the same template as my home page. I’m not sure why it won’t display my two blog posts.

In my home.php template, I have the following code, could this be the issue?

<!-- Display featured images -->
<?php 
    $args = array('post_type'=> 'page');
    query_posts( $args );
?>

<!-- Get featured images -->
<div class="main-thumb left">
    <?php 
        if ( have_posts() ) {
            while ( have_posts() ) {
                the_post(); 
        ?>
            <li>
                <a href="<?php echo get_permalink(); ?>">
                    <div class="tint">
                        <div class="overlay caps">
                            <?php 
                                echo(types_render_field("top-overlay", array("output"=>"html")));
                            ?>
                            <?php 
                                echo(types_render_field("bottom-overlay", array("output"=>"html")));
                            ?>
                        </div> <!-- end .OVERLAY-->

                        <?php the_post_thumbnail(); ?>
                    </div> <!-- end .TINT-->
                </a>
            </li>
    <?php
            } 
        } 
    ?>
</div> <!-- end .MAIN-THUMB-->