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The spike in interest rates will "absolutely not" kill the housing market, says Ivy Zelman,...

The spike in interest rates will "absolutely not" kill the housing market, says Ivy Zelman, appearing on CNBC. "Wall Street reaction was typical, but the main street reaction will be resilient." Traffic has accelerated the past few weeks, she says, as buyers recognize they can no longer be as "complacent" about rates. Prices could rise another 20% even if mortgage rates head to 6%. The Homebuilders ETF (XHB -3.8%).
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Comments (7)
  • Jeffry Chmielewski
    , contributor
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    Zelman is absolutely correct. Inventory is in the drivers seat right now, not rates. May inventory was lowest since 2002... http://bit.ly/195Xlf4
    20 Jun 2013, 12:28 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3342) | Send Message
     
    Agree JC - I bought my first house when rates were at 13% - and houses were selling very quickly. If anything, rising rates may spur panic buying.
    20 Jun 2013, 12:46 PM Reply Like
  • Jeffry Chmielewski
    , contributor
    Comments (600) | Send Message
     
    Exactly, anybody who thinks otherwise needs to look back to the 1980s... Rates not nearly as important as the inventory shortage. 14mm People since the bubble burst but almost no houses built! Home builders looking very interesting here.
    20 Jun 2013, 12:51 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2530) | Send Message
     
    "14 million people since the bubble burst". With rental markets and multi family housing booming and single family construction at recession levels, glib demographic statistics are obviously being misunderstood by many speculators here.
    20 Jun 2013, 01:50 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3342) | Send Message
     
    Single family construction is not at recession levels.
    22 Jun 2013, 06:04 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2530) | Send Message
     
    You're right. Single family home starts and completions are BELOW the level of the six recessions prior to the housing bubble.
    23 Jun 2013, 12:23 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3342) | Send Message
     
    Yet they are 27% higher than last year? You guys make it sound as if housing starts are going down.
    24 Jun 2013, 08:36 AM Reply Like
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