What about rising interest rates?
Signals are pointing to the possibility that interest rates may start to rise. How will it affect the home buyer?
CNN Money reports that "All things being equal, home prices could suffer when rates go up. After all, buyers who could afford a $1,400 monthly payment on a $250,000 mortgage when rates are 5.5 percent may not be willing to pay as much for a house if rates go to 7 percent, in which case the monthly payment would be $1,660. "
We are hearing a lot of buyers express concern that if interest rates begin to rise, they may pull out of the market or certainly scale back what they are intending to purchase.
This will be an interesting subject to watch!
For the complete text of the CNN Money article, gohere .