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Will Rising Interest Rates Affect Home Sales in 2010?

January 4, 2010 by Leave a Comment
treasury vs pending sales for Minneapolis

A reader of this blog asked a good question this weekend: what happens to sales when rates rise? This is an intriguing question.  While I had my suspicions, I wasn't sure what I would find so I put together this little image from Twin Cities MN Pending Sales and the 10 Year Treasury Note.  While the 10yr isn't a direct mortgage interest rate gauge, it correlates very closely.  This chart is on a 5 year scale. (Pending home sales data from MAAR, click image to see larger picture) What we see from this chart … [Read more...]

Filed Under: Info for Buyers, Market Stats, Mortgage Rates, Opinion Tagged With: ,

4.5% Interest Rates Hurt Housing

June 10, 2009 by 2 Comments
Doubt - A Despair Demotivator

In the last two weeks we've seen interest rates on 30 year fixed mortgages move from 4.5% to 5.5% (or higher) that's a big OUCH.  This full interest rate point swing has meant that almost overnight, buyers lost well over 10% of their buying power.  Another way to look at it is housing just got 10% more expensive. While everyone was thrilled to see 4.5% interest rates, myself included, from the very outset I had concern about what this means for housing long term. The short term benefits are large and … [Read more...]

Filed Under: Community Issues, Info for Buyers, Info for Sellers, Market Stats, Mortgage Rates, Opinion Tagged With: , , , ,

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This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.