Impact Of Rising Rates On 2017 Housing Market

Dated: 03/04/2017

Views: 260

Over the last several years, low mortgage rates were a major stimulus to the housing recovery. However, many industry experts are starting to show concern about the possible effect that the rising rates will have as we move further into 2017.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are projecting that mortgage interest rates will continue to trend upward in 2017. Rising interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact on U.S. housing in 2017. If rising rates slow demand for housing, home values will be impacted.

Pulsenomics, recently surveyed a panel of over 100 economists, investment strategists, and housing market analysts and asked the question “In your opinion, at what level will the 30-year fixed rate mortgage rate significantly slow home value appreciation?” The experts in this survey believe that if interest rates rise to 5% or above, it would definitely affect home prices.

several years, low mortgage rates were a major stimulus to the housing recovery. However, many industry experts are starting to show concern about the possible effect that the rising rates will have as we move further into 2017.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are projecting that mortgage interest rates will continue to trend upward in 2017. Rising interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact on U.S. housing in 2017. If rising rates slow demand for housing, home values will be impacted.

Pulsenomics, recently surveyed a panel of over 100 economists, investment strategists, and housing market analysts and asked the question “In your opinion, at what level will the 30-year fixed rate mortgage rate significantly slow home value appreciation?” The experts in this survey believe that if interest rates rise to 5% or above, it would definitely affect home prices.

Blog author image

Marvette Cofield

Your real estate journey should be an AWESOME experience, if not, I have not done my job. Success is defined by my client’s satisfaction when they achieve their specific real estate goals. I take gr....

Latest Blog Posts

Irish Real Estate Team Launch

I am so excited to take the next step in my business.  I am forming a team that is going to maintain my high level of customer service standards.  The ability to help more people with the

Read More

Right Around The Corner

Love all the energy on Facebook and out in public when we have a warm day in the middle of winter, especially this winter with the deep freeze temperatures.  I know there's more

Read More

Trim The Fat

ORGANIC FOOD ON A BUDGETOrganic food usually tastes better, and is better for you, but it can also be very expensive compared to non-organic products. Organic food can cost nearly 50 percent more,

Read More

Homes For Homeschoolers

Homeschooling is the practice of providing children with some or all of their kindergarten through 12th grade education at home, as opposed to in a public or private school setting. In 2012,

Read More