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Rising rates to cool prices? Think again

Posted by Scott Van Voorhis June 27, 2013 11:35 AM

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The housing market is abuzz with speculation that rising interest rates will tame increasingly runaway housing prices.

After all, rates are already creeping up from rock-bottom historic lows in anticipation of the Fed easing back from its multitrillion-dollar rate manipulations.

But Calculated Risk's Bill McBride just took a sledgehammer to that argument.

In this post, McBride throws out numerous cases in the past three decades in which rising rates - even rate spikes in some cases - have done little if anything to bring down home prices.

And if that's the case, then we really have a big problem on our hands, especially here in bubble-prone, perpetually-price-inflated Greater Boston.

What's your take on rising rates? Will higher rates cool down prices as we head into 2014? Will this time be different?


This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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About boston real estate now
Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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