The news is good – or better – for would-be homebuyers as price increases continue to decelerate all across the nation. This even includes San Francisco where prices rose 12.9 percent in June down from an annual growth rate of 18.4 percent in April.
As a result existing-home sales have increased as price gains have slowed. Still, the National Realtors Association reports that buying remains 4.3 percent below the July 2013 level.
Long-term, some economists now predict that the Federal Reserve may begin to raise short-term interest rates in 2015 because the economy is now stronger. This could cause mortgage rates to rise from current relative lows which would, of course, make it more expensive to borrow.