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The February value of the index was 153. The 30-year mortgage rate is about 4.7 percent. If and when long-term interest rates go up just 150 basis points, housing prices in aggregate might be expected to take a further hit in the neighborhood of one third.

Here is the chart for the Composite-US series beginning in 1987. A rise in mortgage rates to 6 percent would imply a further 20 percent fall in house prices. And that assumes no overshooting.

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As www.patrick.net says, now is not a good time to buy a house.


Source: Housing Prices Could Soon Take Another Hit