I think we need to see if this a level of mortgage rates or a spike. Or they could even go higher to 6% in a few months? Historically, the mortgages have average 9%, so we do have a up swing potential.
Or borrowers may have to find a smaller home. If one could qualify for a $400,000 home at October's rates, a half-point increase might limit him to a $360,000 purchase price to keep the monthly payment at $1,200, Jordan calculated.
LendingTree Chief Economist Cameron Findlay said a 30-basis-point rise in the 10-year Treasury note's yield would add about $45 per month to the payments on a $250,000 mortgage. But he was more concerned by the coincidental stricter FHA qualification requirements that will thin an already limited field of potential home buyers.Read it all