Providing mortgage rates rise in sync with underlying economic conditions, “Home sales and housing starts should continue to steadily improve even as interest rates edge higher,” according to a Wells Fargo Securities (WFS) Economics Group study. The report says 19 months of below four percent interest rates did not spur a concerted rise in mortgage applications, although it did affect house values. “Prices of new and existing homes have surged as buyers bought larger and more expensive homes and investors, attracted by relatively higher rental yields, rushed into the market to buy up lower-priced homes and convert them into rentals,” states WFS. MHProNews has learned from nationalmortgagenews the uptick in employment has spurred interest rates to rise. “With employment conditions improving, consumer confidence has increased and more families are looking to buy a home. Buying plans and prospective buyer traffic are both trending up and should continue to do so,” the June WFS report says.
