Rising Interest Rates Insights


In the wake of recent news on rising interest rates, we wanted to share a round-up of the latest insights on the topic from our real estate industry authority partner, Keeping Current Matters.

Rising Interest Rates Impact on Home Prices

There are some who are calling for a decrease in home prices should mortgage interest rates begin to rise rapidly. Intuitively, this makes sense as the cost of a home is determined by the price of the home, plus the cost of financing that home. If mortgage interest rates increase, fewer people will be able to buy, and logic says prices will fall if demand decreases. However, history shows us that this has not been the case the last four times mortgage interest rates dramatically increased.  READ MORE

 Graphic of Impact of Rising Interest Rates on Buying Power

rising mortgage rates

Rising Interest Rates Effect on Home Buyers

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie MacFannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters.This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows.  READ MORE




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