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Record-low mortgage rates failed to pull the housing market out of its funk. Now rates are inching higher, but don’t blame them if home sales stay sluggish.
Just as bargain financing couldn’t save the housing market, analysts say, a gradual rise in rates won’t necessarily crush it. Cheap money matters less than the larger forces at work, especially a 9.6 percent unemployment rate, which keeps would-be homebuyers in fear of losing their next paycheck.
“What’s hurting the housing market right now isn’t mortgage rates,” said Michelle Girard, senior economist at the Royal Bank of Scotland. “It’s a lack of confidence about the U.S. economy. It’s concern about losing a job.”
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