Interest Rates Rising, But Not Enough To Curtail Housing Sales


Screen Shot 2013-06-07 at 12.17.37 AM

For those potential homeowners, it is still a good time to buy.  If you subscribe to econprofaj, you will gain access to articles such as this one, written by Nick Timiroas of Wall Street Journal’s Real Time Economics.  Even though interest rates rose over 4% for the first time in a decade, that is still historically a very low interest rate.  Goldman Sachs economists stated that “Rising rates ‘will likely slow the strong house price appreciation observed over the last year, but the impact will likely be modest given the cushion provided by the high level of housing affordability at present.'”

It should also be pointed out that stagnant wages and underperforming labor market are also potential barriers to sustained improvement in the housing market.  Even though consumer balance sheets have improved, there are still issues of finding credit worthy borrowers to take advantage of low housing prices.

 

Advertisements

One thought on “Interest Rates Rising, But Not Enough To Curtail Housing Sales

  1. I just want to tell you that I am just beginner to blogging and really enjoyed you’re blog site. Very likely I’m likely to bookmark your blog post . You amazingly have beneficial well written articles. Appreciate it for sharing with us your web site.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s