Many real estate experts have noted the possible effect that rising rates will have now and in the near future on the value of homes. Low mortgage rates were a major factor in the market’s recovery the past several years.
The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors (NAR) all project 2017 mortgage interest rates will rise. Increasing interest rates will definitely impact purchasers and may stifle demand. The fed has already indicated they will most likely raise rates soon, possibly in March.