The number of available homes keeps dropping, and mortgage rates have been rising since November. Buyer demand is expected to remain strong, though.
MarketWatch reports that data from Black Knight Financial Services says that higher borrowing costs might not be enough to lessen demand this year.
Back in 2013, rates rose a percentage point, and mortgage applications fell. Home price appreciation increased, however.
If rates go up enough, price appreciation could slow – and possibly even reverse, he told MarketWatch. But there’s another big question mark hanging over the housing market: the path of regulatory reform. If there are big changes to the 2010 Dodd-Frank law, it could open up lending to far more Americans. said Ben Graboske, Black Knight’s vice president of data and analytics.