Industry News

Interest rates above 7% may cool real estate market

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Seven percent mortgage rates seems to be a tipping point for a good or bad housing market, according to a new survey. Most respondents to an Inman News informal survey on mortgage interest rates said rates could safely rise to 7 percent without endangering the health of the real estate market. The survey asked: "At what level can mortgage interest rates reach without significantly impacting the real estate market?" Survey respondents picked from several different rate amounts, ranging from 6.5 percent to "above 10 percent." The results, tallied Wednesday morning, showed that about 34.1 percent of survey respondents answered "7 percent" as a safe level for rates, while 26.8 percent said "7.5 percent" and 24.4 percent of respondents answered "6.5 percent." About 10 percent of respondents said interest rates of 8 percent would not significantly impact the real estate market. This past week, the average contract interest rate for 30-year fixed-rate mortgages increased to 6.1 percent from...