Nightly News   |  June 20, 2013

Housing prices rising too high, too fast?

For the past six months home prices have risen double digits, spurring fears of another housing bubble. And now that mortgage prices have also risen, buyers are able to buy a lot less than they could have a month ago. NBC’s Tom Costello reports.

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>> and what happens on wall street has an effect on everything from retirement accounts to mortgage rates . a lot of people are watching and on edge. that part of the story from nbc's tom costello.

>> reporter: it doesn't take much to spook traders on wall street . today, the prospect of higher interest rates .

>> concern that the only reason stock prices have gotten to the lofty level they are at is because what the fed is doing and certainly there is concern that if the fed provides less support, stock prices could tank.

>> reporter: in the real estate sector, cautious optimism. more than 5 million homes sold in may. up 4% in a month, and 13% in a year. average price for an existing home was $208,000. home prices have risen double digits for six straight months. in los angeles , candy peak fears another housing bubble .

>> it's a feeding frenzy, 5, 10, 25, 50 offers on most properties.

>> diana olick covers real estate .

>> mortgage rates are rising with home prices and buyers are able to get a lot less house than they could even just a month ago.

>> reporter: today in virginia, newlyweds john and aubrey holman looking for a home as interest rates start to rise.

>> if the interest rates did go up, we'd be in a much more difficult situation, probably wouldn't be able to afford the things we want.

>> reporter: nervousness on main street and wall street as the economy regains its footing. there is fear higher interest rates could undermine the recovery in the housing market . one more play on wall street , fear that the chinese economy is slowing. china is the second largest economy in the world. back to you.

>> tom costello tonight, thank you.