Rising mortgage rates are biting into home sales. The Wall Street Journal reports that this will likely continue as interest rates readjust in the new year and as the Federal Reserve winds down its bond-buying stimulus program.
The relationship between rates and home sales is most evident so far with new homes: As interest rates have risen, demand for new homes has also fallen. Housing's Best Buys for 2014: Home prices and mortgage rates are on the rise, and some investors are retreating from the market. However, Forbes believes there are still plenty of housing deals left for home buyers in the new year, and with possibly less competition.
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