If history is any guide then we mention what the history actually is: The usual mortgage rate during the past 40 years or so has been 8.6 percent according to Standard & Poors. That means our real estate market is now powered by mortgage rates which are less than half the norm seen by parents and grandparents.
But what if rates increase? How would that impact real estate sales? What would happen to home prices?
To answer these questions we need to consider several factors . . .