Folks to buy before rates go go further. The thirty year mortgage around 4.75% results in a 28% increase over a 2.75% 30 year rate.

If mortgages go to 5.5% that would result in a 39% increase in monthly mortgage payments. That’s substantive.

Housing prices are and always have been a payment game. If rates continue to increase not only will the market slow but you’ll also see prices fall. The heavy usage of adjustable rate mortgages is going to see a shock as well as many of the mortgages done 5 and 7 years ago are resetting this year.

The starter home companies are starting to see significant slow downs in orders and folks down shifting in prices.