While news about the economy’s turnaround is starting to make headlines, new information indicates that rising interest rates could slow down the recovery process, in particular when it comes to housing. According to an article in today’s Washington Post, in just the past two weeks, the rate on a 30-year, fixed-rate mortgage has risen from 4.9 percent to 5.6 percent.
Although home sales have started to stabilize, and some first-time homebuyers are taking advantage of the market, these sales have been largely the result of borrowers taking advantage of lower interest rates. However, if interest rates continue to climb, it could take even longer for the nation to recover from the economic and housing crisis.
To learn more, please Read the Article.