“This coming week, market participants will be focused on Friday’s jobs report as an indicator of whether the economic recovery is strong enough to withstand an earlier-than-expected withdrawal of Fed stimulus.”

Mortgage rates are up about a full percentage point from where they were at the beginning of May. That translates into about a 15 percent jump in monthly payments for the average home buyer, or 15 percent less purchasing power, depending on how you look at it. That can certainly be make or break for some buyers, especially first-time home buyers who may have been stretching in the first place.

“Applications for new home purchases have continued to move sideways over the last month, but that may be people are rushing to buy or lock in mortgage rates before rates move even higher,” said Michelle Girard of RBS Securities. “It may be that there is going to a bit of a lag effect. I still think rates are historically low, and we are in an improving economy, although a gradual one, the recovery can continue, maybe the pace will moderate—but I do not think the back up in mortgage rates is going to derail the housing recovery.”

Article source: http://www.cnbc.com/id/100862969

(Read More: Map: Tracking the US Real Estate Recovery)

Fear and financing have kept the apartment rental market strong for the past several years, with rising rents and falling vacancies. Rents rose yet again in the second quarter of this year, according to a new report from Reis, up more than 2 percent from a year ago. But rents and vacancies have been stabilizing of late, as buyers return to the market.

Mark Sadaka and his wife are looking to buy a home in New Jersey.

“It’s hard to get a mortgage, but now things have apparently lightened up. I don’t know, we’re exploring that now,” said Mark.

Mortgage credit is easing up slightly, according to a new index from the Mortgage Bankers Association. The increase was driven by a small uptick in the number of jumbo, investor and cash-out products as well as those with higher loan-to-value ratios. All those are riskier loans.

But while credit is easing slightly, mortgage rates are rising. The 30-year fixed hit 4.41 percent on the Zillow Mortgage Marketplace, up 24 basis points from a week ago.That’s the highest in two years. Rates could move higher after Wednesday’s release of the Federal Open Market Committee meeting minutes and more clues to the easing of federal stimulus in the mortgage market.

(Read More: Rising Rates Sour Housing Market Plans)

Rising rates have already taken away considerable purchasing power for potential buyers. Fewer consumers now think it’s a good time to buy compared with just a month ago, according to a survey from Fannie Mae.

Article source: http://www.cnbc.com/id/100874193

“This coming week, market participants will be focused on Friday’s jobs report as an indicator of whether the economic recovery is strong enough to withstand an earlier-than-expected withdrawal of Fed stimulus.”

Mortgage rates are up about a full percentage point from where they were at the beginning of May. That translates into about a 15 percent jump in monthly payments for the average home buyer, or 15 percent less purchasing power, depending on how you look at it. That can certainly be make or break for some buyers, especially first-time home buyers who may have been stretching in the first place.

“Applications for new home purchases have continued to move sideways over the last month, but that may be people are rushing to buy or lock in mortgage rates before rates move even higher,” said Michelle Girard of RBS Securities. “It may be that there is going to a bit of a lag effect. I still think rates are historically low, and we are in an improving economy, although a gradual one, the recovery can continue, maybe the pace will moderate—but I do not think the back up in mortgage rates is going to derail the housing recovery.”

Article source: http://www.cnbc.com/id/100862969