{"id":203,"date":"2018-06-01T01:34:44","date_gmt":"2018-06-01T01:34:44","guid":{"rendered":"http:\/\/renwre.info\/2018\/06\/01\/will-home-prices-fall-as-mortgage-rates-rise\/"},"modified":"2018-06-01T01:34:44","modified_gmt":"2018-06-01T01:34:44","slug":"will-home-prices-fall-as-mortgage-rates-rise","status":"publish","type":"post","link":"http:\/\/renwre.info\/?p=203","title":{"rendered":"Will Home Prices Fall as Mortgage Rates Rise?"},"content":{"rendered":"
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\"Will<\/p>\n

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\u2019s end. Because of this increase in rates, some are guessing that home prices will depreciate.<\/span><\/p>\n

However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.<\/p>\n

Mark Fleming<\/a><\/strong>, First American\u2019s Chief Economist: <\/em><\/strong><\/h4>\n
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\u201cUnderstanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective \u2013 they are unlikely to materially impact the housing market\u2026 <\/em><\/p>\n

The driving force behind the increase are healthy economic conditions\u2026The 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.\u201d<\/em><\/p>\n<\/blockquote>\n

Terry Loebs<\/a><\/strong>, Founder of Pulsenomics<\/em>:<\/strong><\/h4>\n
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\u201cConstrained 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.\u201d<\/em><\/p>\n<\/blockquote>\n

Laurie Goodman<\/a><\/strong>, Codirector<\/em> of the Housing Finance Policy Center<\/em> at the Urban Institute<\/em>:<\/strong><\/h4>\n
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\u201cHigher interest rates are generally positive for home prices, despite decreasing affordability\u2026There were only three periods of prolonged higher rates in 1994, 2000, and the \u2018taper tantrum\u2019 in 2013. In each period, home price appreciation was robust.\u201d<\/em><\/p>\n<\/blockquote>\n

Industry reports are also calling for substantial home price appreciation this year. Here are three examples:<\/p>\n