“Sharply rising mortgage interest rates in the spring motivated buyers to make purchase decisions, culminating in a 6½-year peak for sales that were finalized last month,” said Lawrence Yun, chief economist for the Realtors. “Moving forward, we expect lower levels of existing home sales, but tight inventory in many markets will continue to push up home prices in the months ahead.”
Home prices were up over 12 percent in the nation’s top 20 housing markets in July, according to a report this week from SP/Case-Shiller. While the price gains are moderating, the jumps make it increasingly difficult for first-time home buyers to get into the housing market.
(Read more: Forget easing prices, new homes are up, up, up)
Article source: http://www.cnbc.com/id/101065140