Economist Jonathan Smoke analyzes loan-level data from Optimal blue to forecast the impact of the Federal Reserve’s rate hike on potential buyers.
Markets Smoke says will be most impacted by the rate hike are Honolulu, Stockton, Calif., Fresno, Calif., El Paso, Texas, and Fort Pierce, Fla.
Smoke sees a 6-percent increase in monthly payments on new mortgages – the monthly costs of a $231,000 will increase from $1,107 to $1,175. He also forecasts a 7-percent rejection of mortgage applications.
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