Ignore rising mortgage rates. Job market will show what’s next for housing!

Should real estate watchers — from professionals to homeowners — think rising mortgage rates will kill the housing market? As a common logic goes, pricier financing translates to fewer qualified buyers … and those folks who can pass a lender’s muster will have less cash to spend thanks to higher mortgage rates. A double-whammy for housing? Unfortunately, that thinking misses a key ingredient in the real estate math. No, it’s not where inventory levels are headed. Or the size of the crowd shopping for property. It’s more basic: Jobs.

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Source: Mercury News