This should be no surprise to anyone, as the availability of money will likely increase or decrease any particular market.
New mortgage "purchases" declined by 2.1 percent last week on a seasonally adjusted basis, while interest rates started to climb upward.
The average contract interest rate for the 30-year fixed was at 5.49 percent, up from 5.38 percent, while the 15-year fixed climbed to 4.75 percent from 4.64 percent.
Don't expect to see a dramatic decline in home sales anytime soon, though, as spring is only beginning and home sales typically begin to boom at this time of year, lasting throughout the summer months. Higher rates may keep some potential buyers from becoming buyers, due to lower income, but these deficiencies, too, can be off-set by certain loan programs. Higher rates, however, do have a tendency to irk some potential borrowers' confidence in borrowing.
Also, these rates are less likely to effect the luxury home, beach and waterfront real estate markets, as they are often less dependent upon rate changes when rates are this low.
Information from Inman news was used for this report.
Article comments
1 - Eddie
I would use the books, but I found this man more helpful the buy a home in Edmonton.