The real effect will be a limiting on the maximium home loan amounts. The short term perceived effect will likely be a hesitation on moving forward in either denial of this rapid shift in rates or in hopes that this rise will reverse.
In related news, recently all agencies have scaled back on maximium debt to income ratios. Meaning with out a rate increase the max possible house payment has been reduced for all. And looming changes in the industry from a piece of the 2009 Dodd/Frank law will go ineffect at the end of this year and restrict home loans further. Meaning borrowers will qualify for less again.
The cards are not stacked well for the borrower in 2013/2014.
Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993
American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
602 631-9788 f
602 524-2401 c
602 912-9438 h
BK # 0910057 NMLS LO ID # 284875