I agree that most are conditioned with super low rates. Folks think a 5% interest rate is high. ha I don't think it will take long for most to get past rate as with any installment situation, it's driven by monthly budget.
Here, affordability is still in the zone where it belongs. Buyer's can still afford what they want in most cases. I think we have room for higher rates, just not a drastic change. We are still a slightly seller's market which is one of the factors that backs me up. Depending on market dynamics, I do think a rate jump could result in a healthy adjustment in median price. Much like the stock market, it's a completely different picture than 10 years ago. Qualifying has been hard during the recovery and consumers have the dignity of choice due to the basic fundamentals that didn't exist last time around. Meaning, they can put timing on their side.
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Todd
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