Output shows a page instead of a list of blog postings

I have the below code in front-page.php (with that page set in Settings > Reading); however, something is wrong because the posts aren’t showing. The output is shown below. Can someone identify what the problem may be?

    <?php get_header();?>

        <section id="home-content">
            <section id="latest-news">
                <h2>Latest News</h2>

                    <?php if (have_posts()) : while (have_posts()) : the_post(); ?>

                        <article class="entry" id="post-<?php the_ID(); ?>">
                            <?php if ( has_post_thumbnail() ) { the_post_thumbnail(); } ?>
                            <section class="description">
                                <h3><?php the_title(); ?></h3>
                                <time datetime="<?php the_time('c'); ?>"><?php the_time('F d, Y'); ?></time>
                                <?php the_content(); ?>
                                <p class="post-categories">Categorized under: <?php the_category(', '); ?></p>
                                <a class="read-more" href="<?php the_permalink() ?>" rel="bookmark" title="Read <?php the_title_attribute(); ?>"></a>
                            </section>
                        </article>

                    <?php endwhile; ?>

                    <?php my_paginate_links(); ?>

                    <?php endif; ?>
            </section>
        </section>

    <?php get_sidebar(); ?>
    <?php get_footer(); ?>

The code above outputs the html below. Note: “Home” is a page, not a post.

<article class="entry" id="post-1048">
    <section class="description">
        <h3>Home</h3>
        <time datetime="2012-08-29T06:38:44+00:00">August 29, 2012</time>
        <p class="post-categories">Categorized under: </p>
        <a class="read-more" href="http://site.com/" rel="bookmark" title="Read Home"></a>
    </section>
</article>