Just the Facts
Rates Will Have to Pass 7% Before Housing Slows
The rise in interest rates may only accelerate the market as buyers on the fence begin to buy, feeling the pressure of rising interest rates. Major economists agree that rates will have to surpass 7% before there is a slow-down in the real estate market. And even then with the pent-up demand, the market should continue briskly. History shows that when rates went from 7% to 18% in 1979-1981, the housing market showed no signs of slowdown until about 12%.
- Dallas Morning News, June 21, 2013 (excerpts)
Surging Interest Rates Will Not Slow Market
Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say. Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its assets purchases later this year if incoming data continues to show the economy is on the mend. The average cost of a 30-year fixed-rate mortgage loan increased to 4.36% on June 21st, from 3.94% on June 14th, and a record low of 3.36% in December according to Bankrate.com.
- Inman News, June 24, 2013
Which Real Estate Brand Comes to Mind?
