We saw yesterday that the number of sales in the first four months of 2015 was only exceeded by those in 2013 – which was the only other time mortgage rates were in the mid-3s.
Let’s compare the mortgage-rate history of those two years:
In 2015, the spring kick got a early boost as rates dropped close to the enticing 3.5% range. But now rates are on the upswing.
This graph from the latimes.com shows how prices jumped substantially in the first half of 2013, but stalled as soon as rates began rising:
The lower rates haven’t boosted prices as much this year – of course, we started at a higher point. Rising rates now should cause at least the same effect that they did in the second half of 2013 – flatsville.