"Still historically low."
Chances are, if you're reading a story about home mortgages or chatting about the real estate market, those three words will be included somewhere in the discussion.
As much as we all know that interest rates are likely to rise over time, the unknown aspect in the equation is to what degree rising rates will slow demand for housing.
"Higher mortgage rates definitely hit demand. There's no question about that," says PIMCO's Mark Kiesel in the attached video. "But overall, affordability is still quite attractive right now," the Morningstar Fixed Income Manager of the Year adds, "and near term, the direction is still higher in terms of prices."
A real-life example of this came out earlier today, when D.R. Horton (DHI) - the country's largest home builder - reported a 2% drop in orders from a year ago but a 14% increase in the dollar value of those orders.Read More »from Buy While You Can: Housing Still Affordable but Headed Higher