Could Rising Mortgage Rates Kill Housing Recovery?
Will rising mortgage rates be the factor that kills the increase in real estate prices and sales. Both have risen at an astonishing trajectory, to the point of concern about a new real estate bubble in some regions.
CNNMoney said about the rise in mortgage rates:
In the past month, rates have been on the rise and they are expected to continue to climb. Last week, the average rate on a 30-year fixed-rate mortgage climbed to 3.81%, up from 3.3% in early May, according to mortgage giant Freddie Mac. Meanwhile, those seeking a 15-year loan received an average rate of 2.98%, up from 2.56% a month earlier - a record low.
"It's unlikely that rates will ever be that low again," said Doug Duncan, Fannie Mae's chief economist.
Those who didn't take advantage of record-low rates have missed the boat - at least for now.
It will take months to see the effect because data from real estate research firms Corelogic, RealtyTrac, Case-Shiller and Trulia lag sales activity so much.
Filed under: 24/7 Wall St. Wire, Housing