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Stop blaming rising interest rates for the housing slowdown

Blame the economy instead

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So you heard that rising interest rates are forcing first-time homebuyers to stay on the sidelines, effectively derailing the housing recovery?

Well, think again, argues Heidi Moore in The Guardian.

As Moore explains it, a true housing recovery cannot occur until a real economic recovery is afoot. Per The Guardian:

Rising interest rates are not wrecking the housing recovery; what is wrecking the recovery is that house prices are rising faster than the ability of people to afford them. Maybe we thought we could cheat history, and that a housing recovery would bring about an economic recovery. That can't happen. The housing recovery can't start until the economic recovery begins.

Source: The Guardian
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