How will the housing market respond to rising mortgage rates?
So far, it’s been “resilient,” Goldman Sachs economists wrote in a note out Monday. Goldman’s economic activity indexes show that housing’s share of the economy grew above trend from November to January, a period when mortgage rates jumped 60 basis points.
But rising rates may impact the housing market with a lag, the analysts write. Using the 2013 “taper tantrum” as a guide, the post-election jump in rates will likely have the most pronounced effect in the second and third quarters of this year.