...Or something like that.
After two years of being spoiled by record-low interest rates, they're finally starting to creep back up, thanks to the Fed's attempt to tame the beast that is inflation. In just one month, rates jumped half a point from 3.11% to 3.64%. That's the largest one month jump we've seen since December 2013! On a $1M loan, the difference in rates equate to a $300 increase in monthly mortgage. As if the market wasn't challenging enough for buyers to get into these days.
So how will this affect the housing market? Simply put: The higher mortgage rates go, the more bearish the outlook for home price growth.
A more nuanced perspective: "The impact of rising interest rates depends on where they land. If rates approach 4% before the end of the year, there will be a notable downshift in housing demand. If mortgage interest rates gradually rise throughout the year, allowing home sellers to price their homes accordingly, then the shock to the system will be less noticeable."
All things real estate.