Potential Homeowners Rush To Beat Mortgage Hikes

Home sales are at their highest level since 2007 as buyers try to avoid mortgage rate increases.
1:14 | 09/20/13

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Transcript for Potential Homeowners Rush To Beat Mortgage Hikes
Now, to a big headline on the economy and your money. New numbers out reveal the housing market is booming. Home sales, soaring. More people are rushing to buy right now. Abc's rebecca jarvis is here now, with what's pushing home sales. Hi, robin. There were a handful of things that are pushing this. It is a housing feeding frenzy. Buyers ratesing to get homes before mortgage rates, that's a big one. Before mortgage rates tick any higher. Home sales are at their highest level since 2007. We're hearing that the houses that are sitting on the market are sitting there for less than 24 hours with the pace of existing home sales up 13.2% from last year. The biggest thing spurring this surge are mortgage rates. This morning, the 30-year fixed rate mortgage is 4.4%. That's a full percent where rates were in may. It's creeping up a little bit here. That means bigger house payments. What is the difference we're talking about here? It's sizable robin. Every time you see mortgage rates go up about a percent, you're going to see your cost of owning that home go up 10%. On a $200,000 mortgage, you'll pay about $2,000 a year more. Have a good weekend. That housing surge is good

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