I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.
On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.
I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.
