Rising rates are stretching borrowers in top markets thin, leading to a more uneven national recovery, Bloomberg says in a new article. The firm goes on to explain the dilemma in full detail:

Among large metro areas, San Francisco is most at risk from climbing rates, followed by Los Angeles, New York and Boston, Barclays Plc analysts said in a report last month. The cities should still see home prices appreciate, the analysts led by Sandeep Bordia said.

With property values nationwide increasing in May at the fastest pace since 2006, a slowdown in the housing market is needed after unsustainable price gains in many areas, Stan Humphries, chief economist at property-data company Zillow Inc., said yesterday on Bloomberg Television.