Prices in the US residential real estate sector increased at a slower rate in June. This is a sign of improvement tapering-off in the housing market.

Household wealth is getting a great boost from increasing property values. This has helped push consumer spending back to 70 per cent of the US economy. Concurrently, an increase in mortgage rates is limiting sales and refinancing, which makes it harder to dip into home equity. Buyers are discouraged from future purchases due to the rising mortgage rates. The Fed is planning to remove monetary stimulus from the economy in gradual steps to avoid sacrificing growth.

In July, the sale of new homes declined significantly due to a rise in the median price of new constructed homes to $257,200 as compared to values from the previous year.  

Related article: http://www.bloomberg.com/news/2013-08-27/home-prices-in-20-u-s-cities-increased-at-slower-pace-in-june.html