Kelsey Ramirez | HousingWire
Interest rates are going up, and will likely to continue rising for the foreseeable future, but lenders shouldn’t worry, according to First American Chief Economist Mark Fleming.
The Federal Reserve recently announced its second rate hike for the year, and expects another two before this year ends. This week, Freddie Mac announced mortgage rates rose to their second highest level this year.
However, Fleming explained these rising rates will do very little to curb rising housing demand. He explained First American’s Potential Home Sales model estimates the market potential for existing home sales is currently at a seasonally adjusted annual rate is 6.11 million sales.
If the 30-year fixed-rate mortgage rising to 5%, a level that is expected by the end of 2018 or beginning of 2019, the potential would only decrease to 6.1 million existing home sales, according to the model.
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