Higher Rates Won't Hammer Housing

摘要

The end of cheap money is rapidly drawing near. Improving labor markets and pricing power are moving the Federal Reserve ever closer to a series of interest-rate hikes that will affect the entire maturity spectrum of fixed-income securities. With long-term rates already up sharply in recent weeks, the focus has been put squarely on the outlook for housing, the economy's most interest-sensitive sector. How will housing demand, homebuilding, and home prices hold up?