The surge in mortgage rates means home buyers with a mortgage preapproval from late January will see a rise in mortgage payments of 15% if they can’t find a home before their approval expires at the end of April. That is making them desperate to find a home and, because paying 10% more for a property is a better deal, those buyers also help explain the recent jump in house prices. But that impact on prices will be short-lived and higher mortgage rates will soon act to slow house price growth.
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