Don’t Fear rising mortgage rates just yet: Freddie Mac
The interest rate for a 30 Year, Fixed Rate mortgage is expected to hover around 4% during the second half of 2013 after rising 0.5 percentage points in the past several weeks, Freddie Mac said in its latest U.S. Economic and Housing Market Outlook. But, don’t expect rising interest rates to stall the nation’s housing recovery just yet. Housing remains affordable and it would take a much steeper interest rate hike for potential homeowners to feel the economic pinch of rising rates. In fact, Freddie Mac Researchers say at today’s home price and income levels, mortgage rates would have to rise above 7% before families would find themselves unable to afford a median-priced home.
