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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  ) .

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

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  • 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.


    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.

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