Higher interest rates will have an impact on home sales. That impact started earlier this year when there was a rush to buy before the rates go up. If we look at the big picture rates are actually pretty low but if we look at the big picture housing prices have gone way up.
I pulled a couple of charts from FreddieMac. If we look at rates over the last year we see a steep increase.
If we look at rates over the last five years it doesn’t look as steep.
At this time in 2017 houses in St. Paul had a median sale price of $170,000. The median sale price right now is around 255,000.
Rents have gone up too. We need more housing. All types of housing for all income levels.
