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Lower Rates Could Mean Fewer Home Sales

By Marcie Geffner -

Rising interest rates strike fear and dismay into the hearts of home buyers, sellers, and real estate professionals—and with good reason because when rates rise, home sales tend to decline.

It’s a common misperception that rising mortgage rates cause house prices to drop, but in fact, historical trends show a positive correlation only between rates and sales, not rates and prices.

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