HUD Articles

How will increasing interest rates impact the housing market?

In the past this was a easy question to answer – when interest rates go up, it costs more to purchase a home, the demand drops, price appreciation slows and home stay on the market longer. This year, the numbers are not that straightforward. The market has been hot, homes are still selling fast with multiple offers. The price of new listings continues to rise. Buyers are lining up to buy homes for so long that increased costs haven’t deterred any demand yet! If interest rates continue to rise, we may see a shift in the market and a short window of opportunity for buyers. Jasna Hoyt