WHY 5% MORTGAGE RATES AREN'T A THREAT

Source: REALTOR® Mag

Mortgage rates are on the rise. Could that derail sales? According to First American’s Potential HomeSales model, even if the 30-year fixed-rate mortgage rose to 5 percent, the impact on the housing market would be modest.

Many economists are predicting that the 30-year fixed-rate mortgage will average 5 percent by the end of 2018 or early 2019.

First American’s Potential Home Sales model estimates the potential for existing-home sales based on market fundamentals. The market potential for existing-home sales based on current fundamentals is 6.11 million at a seasonally adjusted annualized rate. If the 30-year fixed-rate mortgage rose to 5 percent, the impact would be a slight decline to 6.1 million existing-home sales, according to the model.12 months.

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https://magazine.realtor/daily-news/2018/06/19/why-5-mortgage-rates-aren-t-a-threat