Account: Login or Signup

706-970-7120 info@bestmountaindeals.com

Will Home Prices Fall as Mortgage Rates Rise?

Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate.

However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.

Mark Fleming, First American’s Chief Economist:

“Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market…

The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”

Terry Loebs, Founder of Pulsenomics:

“Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.”

Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute:

“Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”

Industry reports are also calling for substantial home price appreciation this year. Here are three examples:

Bottom Line

As Freddie Mac reported earlier this year in their Insights Report, “Nowhere to go but up? How increasing mortgage rates could affect housing,”

“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

Get the info that you want - right now!

Mortgage Interest Rates Have Begun to Level Off

Whether you are a buyer searching for your first home, or a homeowner looking to move up to your next home, you should pay attention to where mortgage interest rates are heading.

Read More

50 Percent of Homes Sold in 30 Days in March

Homes typically went under contract in 30 days in March!

Read More

5 Reasons Why to Sell This Summer!

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell. Take advantage of the buyer activity currently in the market.

Read More

About Area

Come kickback, relax, and enjoy the Blue Ridge Mountains! Whether you are looking to get back to nature on the Appalachian Trail or Lake Nottely, take in one of our many festivals, or visit some of the local artisan shops you will find it in Blairsville, GA.

Featured Properties

1091 CREEKSIDE DR,
Hiawassee

  • 2 Bathrooms
  • 2 Bedrooms
  • $ 79900

1586 MOCCASIN TRAIL,
Hiawassee

  • 2 Bathrooms
  • 2 Bedrooms
  • $ 139000

201 PARKS RD,
Hiawassee

  • 4 Bathrooms
  • 4 Bedrooms
  • $ 699000

Client Reviews

Subscribe to our Monthly Mountain Market Report

Subscribe to our Monthly Mountain Market Report . All fields with an * are required.