This is a critical question for the RE market. Becuase if they do go up over 7%, the RE market will have huge pressure to reduce prices even more than they are already. The trends we know are now in action…rising unemployment,recession, tightening credit, rising real inflation,etc… are providing downward pricing pressure. But I’ve always thought that mortgage rates followed T Bills pretty closely. But the risk-reward model makes more sense to me. I’ve heard believable arguements on both sides for it going up and down. Can anyone with more in-depth insight chime in on this?????
