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nor does the fact rates tick up decide whether the housing market lives or dies . it is a myth that housing prices and rates are joined at the hip . they are not as there are so many other factors . or obviously we would bebooming now and that has been far from the case .
Last edited by mathjak107; 11-17-2015 at 08:35 AM..
Let's see. Average 30 year rate according to Freddie Mac in January this year was 3.67%. In July it was 4.05%. That's a 3/8 point swing with no perceptible effect on sales. Last month it was back up to 3.8%. Was over 5% in 2010. Inventory seems to have been a much bigger factor than interest rates in recent years. My guess it's gonna take a bump of a full point or more to make anyone notice. Even then tight inventory might continue to trump rates.
If rates rise buyers will have the choice of making an offer for a property they qualify for (could be less than what they had qualified earlier for) or buying down the interest rate.
Seller's do not care if a lot of buyers can qualify for their house. They are concerned with the one that CAN close.
Tell us why if the cost of the monthly mortgage goes up due to an increase in the interest rate has no impact on the amount of house someone can buy.
Going from 4% to 4.25% means an extra $15 per month for every $100,000 of mortgage. Prices aren't going to be dropping hundreds of thousands of dollars and if $15 per month is significant enough to break someone's budget, they have no business buying a house, since unexpected expenses are an inherent part of home ownership.
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Not true at all.
