We knew the ultra low interest rates wouldn't last forever. But the time is coming for a nearly 5% 30-year fixed.
While still historically low, some surveys by C.A.R. are showing that a small portion of buyers will opt out if rates hit 5%.
Two comments:
1. Buyers who opt out are being very short sighted in my opinion. You're either going to get locked into still historic lows, or you can refinance if the interest rate ever drops again. No brainer.
2. Sellers can anticipate a slight softening of the market due to less buyers. 2019 is expected to have even higher interest rates. Meaning 2018 could be a very good time to sell.
