Mortgage rates took a large hike yesterday and have come down a bit today. It is important to keep an eye on rates becasue they will tend to respond to economic news. In general good news makes higher rates. Higher rates make houses more expensive to buy because even though the price of the house may not rise, because most of us need a mortgage, when rates rise our buying power declines.
For those who are waiting for the market to bottom out my opinion is that you are already too late. Rates are going up and home prices are unlikely to decline a whole lot more. I think there will be a rush of buyers this spring as the public begins to figure out that they miss the boat entirely as rates go up...which they will. You can take that opinion to the bank!
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