As Mortgage Rates Rise, Will Panic Buying Ensue?

Rising mortgage interest rates are going to slow down the red-hot mortgage market, right? Well, according to the National Association of Realtors, maybe not. The national trade group of real estate professionals thinks the recent spike in mortgage rates may be just the thing to bring hesitant buyers off the fence and to the closing table.

As backwards as it sounds, could higher prices really translate to higher mortgage sales? In the video below, Motley Fool contributor Jay Jenkins takes a closer look at the implications of such a phenomena for mortgage lenders like Wells Fargo (NYSE: WFC  ) , JPMorgan Chase (NYSE: JPM  ) , and Bank of America (NYSE: BAC  ) .

Despite many banks raking in mortgage fees over the past several years, some investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

 


Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 27, 2013, at 8:47 AM, jimesi wrote:

    yeah right. its red hot for sure....

  • Report this Comment On July 27, 2013, at 9:08 AM, Dadw5boys wrote:

    No, the only people to rush will be those with HELOCs that are comming to a 10 year end. Many of us got HELOCs at minus 1 % after the banking crash and time is approaching to pay them up or flip them to a 6 % monthly payment.

  • Report this Comment On July 27, 2013, at 1:20 PM, normgarry wrote:

    I recently refinanced my house from a 7 to a 4.5 - and refinanced my car as well - which will save me around $388/ month.

    There will be no "panic buying" this time around because most banks don't want to give a mortgage to people it can't be sure will have a job for 30 years.

    SAY WHAT YOU WANT ABOUT UNIONS, but GUARANTEED WORKERS ARE GUARANTEED MORTGAGES BEING PAID.

    Our Jobs are now in China and India and the average American is deep in debt from student loans to hospital bills.

    70% of mortgage apps are refinances. That's not a good thing. As rates rise, apps will decrease due to the fact many people's credit is constantly being hammered down by debt.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2549707, ~/Articles/ArticleHandler.aspx, 9/20/2014 8:19:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement