As I recently wrote, Alan Greenspan told America the housing boom was over, but he didn't say it was going to crash. Money Magazine apparently agrees with him. The St. Petersburg Times reported today on Money's recent advice:
Rising mortgage rates will make housing less affordable, but not to worry, Money magazine says. "This rising-rate environment is more likely to temper growth than curtail it altogether." For one thing, economists say that "a better job market will help offset the drag from higher interest rates."
We have already seen some adjustment in housing from rising rates, although more in some areas than others. Both home and condo sales remain strong in this area, and they will continue to do so. Beach area housing will likely be stronger than others, as waterfront homes and condos close to the beach continue to rise in popularity. Prices in that area also continue to appreciate quickly, even with higher rates. Tampa Bay as a whole remains a strong seller's market, with higher prices still attracting buyers. While new construction may be lower, both home and condo sales will remain strong. If there is any slowdown worth noting, it would only happen if rates increased above eight percent, or if another Sept. 11 happened (Heaven forbid).
Mortgage rates ended the week with an average of 6.32 percent, according to Money.
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