High mortgage rates impact home prices?


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A current look at what is happening to interest rates.  Mortgage rates are linked to the bond markets; if bonds are low then mortgage rates are low.  Previously, the demand for bonds was high; so Mr. Bond could offer low rates to attract investors…thus keeping mortgage rates low.  But after the election; investors saw many opportunities in the stock market and quickly shifted their assets from bonds to stocks….forcing Mr. Bond to offer higher yields to keep as many assets in the bond market as possible.  Thus the higher bond prices caused higher mortgage rates.  But will this have a significant negative impact on home prices in the Portland/Vancouver market?  For more information: Click Here


Posted on November 29, 2016 at 2:05 pm
Matthew Morris | Category: Real Estate

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