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New Home Sales Down 7.8%, But Location Matters; Rising Rates: Who Will Be Hit and How Hard?

New Home Sales Down 7.8%, But Location Matters; Rising Rates: Who Will Be Hit and How Hard?

It was nice while it lasted, but the long run of historically low mortgage rates is clearly coming to an end. This month Freddie Mac's Outlook looks back at where rates have been, where they are going, and what the effect might be on home buyers, homeowners, lenders, builders, and real estate agents. The authors, Doug McManus, Freddie Mac Quantitative Analytics Director and Elias Yannopoulos, Quantitative Analytics Senior, also look at what may drive rates going forward and present some scenarios for the future. Rock bottom interest rates weren't always the norm. Older Baby Boomers were buying their first homes in a very different environment. In 1981 rates topped 18 percent , having soared there from 8 percent over a four-year period. Freddie Mac says that was the most dramatic increase in
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