Rising Interest Rates Spells Trouble

Rising Interest rates spells trouble for more than just buyers, it's a major problem for the entire Arizona real estate market and national real estate market as a whole.  Buyers are the first ones seemingly affected as higher rates means less buying power, equating to less home sales and also less home sales at higher price points which help stabilize the market.

An increase in interest rates will effectively lower home values nationwide and think of the effect on the thousands of people who have ARM loans still -- many of these people are barely making their payments, what happens when their ARM resets and they can no longer afford to pay any longer?  Foreclosures and more short sales...it becomes a vicious cycle...http://bit.ly/eNO7mM