[izomax]

http://www.reportonbusiness.com/servlet/story/RTGAM.20080612.wbcmortgage0612/BNStory/Business/home/

If the mortage continues to go higher wouldn't that reduce demand and drive down the price?

 

[Jarrek]

Over long term and in theory, probably, but you never know what the market will dictate.

Late 2005, mortgage prices went up by about 2% over a span of a year and a half. Yet In early 2007, house prices were more expensive then in late 2005. So it takes a few more factors than just an increase in mortgage rates for home prices to fall.