Updated March 25, 2022 2:39 pm ET / Original March 25, 2022 1:00 pm ET
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Traditional home buyers are sure to be pinched by rising mortgage rates, but better-financed investors could keep prices rising. Here, a home for sale in Houston last summer. Brandon Bell/Getty Images
Recent data suggest that the housing market is cooling quickly as mortgage rates climb. But there are reasons to remain upbeat on housing even as economists predict pain.
Sales of existing homes, which make up most of the market, unexpectedly fell 7% in February from a month earlier, as the average 30-year mortgage rate rose to about 4.1% in February from 3.6% in January, according to Bankrate. Economists warn that’s just the start, as the Federal Reserve begins tightening monetary policy. Housing demand lags behind mortgage…