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