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How rising rates will impact home prices

Mar 10, 2017
Housing’s share of the economy rose above normal levels from November to January, despite mortgage rates surging 60 basis points at the time. Economists caution that there may be a lag to the impact of rising rates and particularly their effect on home prices. In an analysis, Goldman Sachs economists found that the median home price often drops 3 to 4 percent. 

That said, buyer demand is much stronger than supply at the moment and the economy and job growth are continuing to support the housing market. Many economists are skeptical whether mortgage rates will actually rise much more than they already have. A survey conducted by MarketWatch in December 2016 showed an average for rates of 4.5 percent throughout 2017, a 35 basis point increase from current readings. 

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NYS home sales post second-highest May total

Homebuyer activity remained strong in May, driving the New York State housing market to the second-highest sales total for the month with 10,348 closings. May 2018 closed sales were 8.6 percent lower than the record of 11,322 set in May 2017. The median sales price growth trend continued, increasing by 11.5 percent compared to last May, ending the month at $262,000. Click here to read more.

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