With the Federal Reserve's recent increase in interest rates, many people are concerned about the impact increasing rates will have on the real estate market. Buyers, of course, are concerned because higher rates will affect their ability to buy a home (either buy a less expensive home or pay more each month with a higher interest rate mortgage payment... or both).
Sellers, although most people don't consider it, can be affected since higher rates will likely negatively affect property values. Even someone considering refinancing their mortgage will be affected. So, everyone should be concerned about the effect that higher rates will have on real estate.
Although the mortage market really hasn't yet been affected by the recent rate increase, if the Fed determines additional increases are needed this year, then we will see an impact on the real estate market sooner rather than later.
Make no mistake about it... rates WILL certainly head higher... it's just a matter of when and by how much.
To help see the impact rates can have on a mortgage payment, here's a graphic that "tells the story". Study this carefully...