Here's a quick perspective on the interest rate rising to 5% in the next year or so. It sounds like we shouldn't be too alarmed........
If the 30-year fixed-rate mortgage rose to 5 percent, the impact would be a slight decline based on First American’s Potential Home Sales model.
Rising rates indicate a positive economic condition which in turn will cause household income to rise. This will help offset the increase in borrowing costs from higher rates, according to Mark Fleming, First American’s chief economist.
Adjustable Rate Mortgage could be an option to offset the higher mortgage rate too.