{"id":1745,"date":"2017-03-09T00:00:00","date_gmt":"2017-03-09T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/how-rising-rates-will-impact-home-prices\/"},"modified":"2017-03-09T00:00:00","modified_gmt":"2017-03-09T00:00:00","slug":"how-rising-rates-will-impact-home-prices","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/how-rising-rates-will-impact-home-prices\/","title":{"rendered":"How Rising Rates Will Impact Home Prices"},"content":{"rendered":"

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Americans have, so far, stood resilient to rising mortgage<\/a> rates, but a bigger impact will come soon, say Goldman Sachs economists.\u00a0<\/p>\n

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Read more<\/strong>: Mortgage Rates: Is It a ‘Year Full of Surprises’? <\/span><\/p>\n<\/blockquote>\n

Housing\u2019s share of the economy rose above normal levels from November to January, despite mortgage rates surging 60 basis points at the time.\u00a0<\/p>\n

Still, economists caution that there may be a lag to the impact of rising rates and particularly their effect on home prices. In an analysis\u2014pulling data from past 100-basis point increases in mortgage rates\u2014economists found that the median home price<\/a> often drops 3 to 4 percent. \u00a0<\/p>\n

\u201cThis median estimate suggests that the recent 60 basis point rise in mortgage rates should, all other things equal, lower house prices by 2 to 3 percent,\u201d the Goldman analysts concluded. \u201cThis estimate thus supports our forecast that national house prices will continue to rise, but at a slower pace in the next few years.\u201d<\/p>\n

That said, buyer demand is much stronger than supply at the moment and the economy and job growth are continuing to support the housing<\/a> market.\u00a0<\/p>\n

\u201cThe housing market is also in a more virtuous cycle: Home equity has recovered, mortgage rates remain low enough to be manageable, and high rents make homeownership attractive,\u201d MarketWatch reports. \u00a0<\/p>\n

Many economists are skeptical whether mortgage rates will actually rise much more than they already have. A survey conducted by MarketWatch in December 2016 showed an average for rates of 4.5 percent throughout 2017, a 35 basis point increase from current readings.\u00a0<\/p>\n

Source: \u201cHere\u2019s How Home Prices May Respond to Rising Mortgage Rates,\u201d MarketWatch (March 7, 2017)<\/em><\/p>\n<\/div>\n<\/div>\n

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Americans have, so far, stood resilient to rising mortgage rates, but a bigger impact will come … How Rising Rates Will Impact Home Prices<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1746,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[518,1403,12908,543,627,617,344,408,1295,1292,1007,41,818],"class_list":["post-1745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-america","tag-buy","tag-home","tag-home-buying-guide","tag-homeowners","tag-house","tag-housing","tag-mortgage","tag-mortgage-rate","tag-mortgage-rates","tag-owners","tag-property","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/yY6tkesQjQs","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6503,"url":"https:\/\/amazingproperty.com.ng\/blog\/loan-demand-stalls-as-buyers-owners-pause\/","url_meta":{"origin":1745,"position":0},"title":"Loan Demand Stalls as Buyers, Owners Pause","author":"Amazing Property","date":"October 4, 2017","format":false,"excerpt":"Mortgage applications to purchase a home and for refinancing barely budged last week, the Mortgage Bankers Association reported Wednesday. Economists are blaming the stall in loan demand on rising interest rates and rising home prices. Total mortgage application for refinances and home purchases decreased 0.4 percent last week compared to\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Mortgage Activity 100417.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/mortgage_Activity_100417.png?fit=600%2C315&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/mortgage_Activity_100417.png?fit=600%2C315&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/10\/mortgage_Activity_100417.png?fit=600%2C315&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":14628,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-back-above-3-will-they-keep-rising\/","url_meta":{"origin":1745,"position":1},"title":"Mortgage Rates Back Above 3%. Will They Keep Rising?","author":"Amazing Property","date":"October 1, 2021","format":false,"excerpt":"Mortgage rates are hovering near their record lows. \u201cConsumers shouldn\u2019t panic . The 30-year fixed-rate mortgage averaged 3.01% this week, posting a sharp rise after spending nearly four months below 3%. 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