According to an article in Mortgage Professional America:
Some are saying that the sharp rise in mortgage interest rates in June, driven by bond market responses to the Fed, is leading to a bubbling housing market. But CoreLogic shares a more optimistic housing recovery outlook in its July MarketPulse Report.
CoreLogic Chief Economist Mark Fleming, Ph.D., and Deputy Chief Economist Sam Khater say the market is not experiencing a housing bubble. Instead, the recent rise in mortgage rates is helping to slow the pace of current appreciation, preventing another bubble.
“Rates would have to rise appreciably higher to cause a housing market downturn,” the economists wrote in the report.
Instead, housing affordability is near its height due to historically low interest rates and home prices.
Full Article Here
My opinion- This is the one good thing about the rise in interest rates. It staggers housing a little bit which is actually needed. Values were increasing just based on confidence which is how we got in this mess in the beginning! Slow and steady in any market wins in the long run.
- Home-buying Affordability Remains High (247wallst.com)
- American Home Prices Are Still Way Off Of Their Highs (businessinsider.com)
- CoreLogic Releases July MarketPulse Report (virtual-strategy.com)