Mortgage interest rates across the US as of June 1, 2013. Source: Altos Research
That’s a big move, people. See last week’s post for our current thinking on the housing impact of higher interest rates. Wow.
If this keeps up in June, I may have to rethink some assumptions about the recovery.
This interest rate spike is coinciding with the end of the seasonal housing strength. The market peaks at the end of June.
So if rates climb enough to deter buyer demand, we’ll see the impact in July’s price reductions and new listings pricing. These leading indicators will set the foundation for home prices in 2014. Stay tuned.
Note that the AltosTrends Leading Indicator analytics package is available for those who want the data in real time.