In an article by Les Christie at CNNMoney, researchers at Fannie Mae concluded that the recent spike in mortgage rates will not affect the housing recovery. The study looked at the relationship between mortgage rates, home prices and sales, during two time periods where mortgage rates skyrocketed. The increased rates showed that it had little to no impact on home prices.
Another point made by researchers was that higher rates and higher home prices reflect an economy that is doing well and that people are financially able to afford higher prices. Even with mortgage rates being higher than what we saw last summer, they’re still affordable and very low compared to the average rate of 6%.
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