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Perspective | Rising rates will cool the housing market. But a crash is unlikely.

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Perspective: Rising rates will cool the housing market. But a crash is unlikely.

The combination of rising house prices and rising mortgage rates means greatly increased monthly interest and principal payments for people buying homes these days compared to what their payments would have been last year. This makes it much harder for people buying homes to qualify for mortgages and holds down the rise in home prices.mortgage payment calculator.

But what was a $500,000 home at the end of 2021 would have become a $525,000 home, based on the 5 percent increase in Freddie Mac’s home price index. That’s pretty close to Freddie Mac’s home price projections. Freddie’s predicted price increase falls to 2.2 percent this quarter, down from 5 percent in the first quarter, then continues to fall to 1 percent a quarter next year.

 

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If experts say one thing, you can guarantee that they are preventing you from cashing in on what they know behind the scenes. Expect a crash. It will happen

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