Last week, the Standard & Poor's Case-Shiller home price index showed a 12 percent increase in prices. Of the 20 cities profiled from April 2012 to April 2013, it showed the largest increase since 2006.
In an interview with The New York Times, Renae Jackson, an agent in Houston stated that for those looking for a house around $100,000, it's still pretty tough.
If the rates increase too fast, it could cause a "pullback."
“I don’t think they’re going to take it that high that fast — they don’t want to see the economy crash again,” she said.
This May, the average interest rate on a 30-year fixed mortgage was at 3.5 percent.
