Why Higher Interest Rates Will Worsen the Housing Market – DailyFinance
Interesting analysis on the effect of interest rates on mortgage loan payments. Here in Texas, it might take a very large increase in rates to slow down the increase in DFW housing prices. As long as employment growth is strong, competition will continue to be fierce for houses.
“If interest rates rise, even slightly, they could send home prices — and home values — lower, simply by reducing the ability of buyers to pay for a home.”
Source: Why Higher Interest Rates Will Worsen the Housing Market – DailyFinance