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Don’t panic until U.S. mortgage rates hit 5 percent: VIDEO

From the New York site: Rising mortgage rates are no reason to panic.

So said Jonathan Miller, president and CEO of appraisal firm Miller Samuel, in a Bloomberg TV appearance.

“The whole idea of rising interest rates, I’m actually relieved,” he said, “because the fundamentals in terms of job growth, income, credit, don’t support 12 percent price growth.”

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Rising rates aren’t spooking would-be homebuyers either, he added.

“I think we have some room in terms of rate rises up to maybe 5 percent on a 30-year fix,” he explained. “I think the rates were too low for too long, it was almost overkill. So there’s not going to be that much damage in terms of loss of activity until we get over the 5 percent threshold.” [Matrix]Julie Strickland

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