WILL THE PENDING RISE IN MORTGAGE RATES AFFECT HOME VALUES?
Published December 14, 2016
Many people are asking if a rise in mortgage rates will affect home values. According to an article in the Wall Street journal titled "Higher Rates Don't Mean Lower House Prices After All" a study by John Burns Real Estate Consulting Inc. concluded that 'prices weren't especially sensitive to rising rates, particularly in the presence of other positive economic factors, such as strong job growth, rising wages and improving consumer confidence.' The graph below shows historical home price changes during periods of rate increases. Time will tell.