Real Estate

Rising rates offset by stronger economic growth

According to Trulia, rising mortgage rates are taking a chunk out of the mortgage industry, but in the longterm it will be more of a slice.

In one month, Trulia notes:

Refinancing applications typically fall by 45% in the month of a spike, with further falls one and two months after mortgage rates jump, compounding the effect. The drop in refinancing applications this year was roughly 50% cumulatively over two months, which actually looks small compared with similar rate jumps in the recent past.

In three months, the blog notes:

New home sales and existing home sales drop. That means that the May mortgage rate spike should show up most strongly in August new home sales and existing home sales, both of which will be reported later this month (on September 25 and September 19, respectively).

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