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Daily Real Estate News  |  December 9, 2010  |   Rising Interest Rates Stall Some Home Sales
Rising interest rates have closed the door on $1 trillion in loans, said Scott Buchta, an investment strategist at Braver Stern Securities in Chicago.

As rates on loans guaranteed by FHA rise above 5 percent, fewer and fewer buyers qualify. LendingTree Chief Economist Cameron Findlay pointed out that a 30-basis-point rise in the 10-year Treasury note's yield would typically add about $45 per month to the payments on a $250,000 mortgage.

"Should rates rise higher from here, you'll start to have an impact on a purchase market that is just starting to recover," said Buchta.

Source: Reuters News, Al Yoon and Daniel Trotta (12/08/2010)

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