On the other hand, housing industry experts also argue that higher rates reflect an improving economy and wage growth, which could also help the housing market in the long run.
Still, some market observers are worried that the rising mortgage rates could dissuade borrowers to move into new homes.
“Given the jump in mortgage applications last week, the technical action suggests there is something else lurking out there to change the fundamentals for the worse. For now, trends are broken and the bears have control. It is probably not a good idea to bet against that kind of trend,” according to Barron’s.
For more information on the housing market, visit our homebuilders category.
SPDR S&P Homebuilders ETF