Price Gains and Mortgage Reins 21

real estate housing marketWhat’s slowing down the housing recovery more – rapid price gains or rising mortgage rates?

It’s a question that’s debated by economists every time we see growth in the housing market. So it’s no surprise that during the recovery we’re seeing there’s opinions on both sides of the table. And each group has its own theories. But as they say, “The proof is in the pudding.” We’re going to see what communities pick up and which communities lag behind.

For my part I think price gains are really good for the housing market growth. A positive forecast for a city brings a lot of big business, a lot of real estate investors, and high prices aren’t necessarily going to scare off the right clientele.

What’s your take on the situation? Think the banks need to loosen the reins a little more? Think people need to only focus on markets still in price decline? Leave your comments below.

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