Whither The Housing Sector---Spiking Rates, Rising Taxes, High Prices

The average interest rate for 30-year fixed-rate mortgages backed by the FHA with 20% down rose to 4.58%, the highest since April 2011, according to the MBA. And the average interest rate for 15-year fixed-rate mortgages with 20% down rose to 4.02%, also the highest since April 2011.

Home prices have skyrocketed in many markets since those years of higher mortgage rates, such as 2011 and before. The S&P CoreLogic Case-Shiller National Home Price Index has surged 40% since April 2011:

 

https://wolfstreet.com/2018/02/21/what-will-spiking-mortgage-rates-high-home-prices-the-new-tax-law-do-to-the-housing-market/

 

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