ML-Implode News - How (Slightly) Higher Mortgage Rates Maul Housing Bubble 2.0

``from a historical point of view, nothing major has happened so far. That spike is still small compared to what came before, including the spike during the Taper Tantrum in the summer of 2013, when the Fed started musing about ending QE Infinity. Compared to prior years, rates are still very, very low, but home prices have since soared, and for home buyers even a minor uptick makes a world of difference.
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[Estimates based on a] median house [in San Francisco], at $1.3 million, with a 20% down payment ($260,000!) [at] the recent increase in rates from 3.57% to 4.125% jacks up costs by $330 a month, or almost $4,000 a year. If rates drift up to 4.5%, costs jump by $560 a month, or $6,700 a year. If rates reach 5%, the additional costs jump by $10,600 a year.
What happens in some saner parts of the country is similar, but on a lower scale, depending on taxes and insurance costs. For example, for the national median home, priced at $232,200, with rates going from 3.57% to 4.5%, costs would rise by about $1,200 a year. If rates hit 5%, costs would jump by about $1,900 a year. For households on a tight budget, these additional costs would turn into an impossible squeeze.

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How (Slightly) Higher Mortgage Rates Maul Housing Bubble 2.0