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Vivian Gueler of Pacific Trust Group said rising rates are slowing the housing market, but it could be months before prices fall.
Investor purchases made up more than 1 in 5 home sales in December, according to CoreLogic.
We spoke to Michael Hewson, chief market analyst at CMC Markets, for some insight.
Homebuilders already face higher prices for materials. More expensive loans could affect construction for years.
So far, that hasn’t had a chilling effect on applications.
The latest survey data shows that homebuilders have a positive outlook despite inflation and supply chain woes.
Higher interest rates could slow down price growth, according to housing economists.
After a pause, HELOCs could regain popularity if mortgage interest rates rise.
It opens the door to interest rate hikes.
With mortgage rates around 3%, many of those who might benefit the most from refinancing and reducing their monthly payments aren’t able to.