The pundits are making dramatic, even doom-laden pronouncements about what is going to happen with interest rates (and the housing market), though theyâ€™ve been wrong so many times over the past few years, these â€œexpertâ€ predictions might be taken with salt-shakerâ€™s worth of salt, perhaps with lemon and a nice shot of tequila.
Obviously, interest rates are an important component of the real estate market. But this chart gives a little context to what has occurred recently: the blue column is the average 30-year interest rate for the first 5 months of 2013, when everyone was dancing with glee at how low the rates were; the black line at the end represents the interest rate on Friday, June 6th, though it is true that it briefly hit 2 tenths of a percentage point higher earlier in the week (so if you like, add the tiniest smidgeon more to the black line).
I donâ€™t know where interest rates will go, though they will probably rise over timeâ€”and perhaps there will be an upcoming interest-rate shock. But terror seems a bit premature.