Mortgage rates are at a two-year high, which may impact the buying patterns of first-time homebuyers, though experts do not expect it will keep buyers from purchasing a new home.
"A lot more people are cognizant of interest rates than in the last 12-24 months," Noah Goldberg, a real estate agent in Hoboken, New Jersey, told Business Insider. Yet, there are some homeowners that are not concerned by rising rates. "The people not paying attention are those who bought in the 1980s and 90s when interest rates went over 20 percent and spent most time in the double-digits," said Kalena Masching, a Redfin agent in Palo Alto, California.
On Wall Street, investors are bracing for higher inflation, as the federal government stimulates the economy by cutting taxes and raising spending. That means the Federal Reserve may have to raise borrowing costs to reduce the risk of consumer demand running too far ahead of what the economy can produce. And that would mean higher mortgage rates.
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