It seems clear, that for the moment at least, many buyers have accepted that although homes are considerably more expensive they were last year, they are going to move forward with a purchase anyway.
Why haven't higher interest rates had a bigger impact? Here's our take.
First, we still have an overall shortage of housing. When one buyer drops out of the buyer pool due to affordability issues, there is another one who needs a home ready to take their place.
Second, the rapid rise in home values over the past couple of years have left families with large chunks of equity that they can now put towards home purchases. It is common for a parent to use a refinance or a HELOC to help a first time home buying son or daughter lower the monthly payments on their new mortgage. This can serve to largely nullify the increase in payment.
Third, and this is likely the most significant reason, we aren't seeing widespread job losses. It's true that we are seeing some losses in the tech sector but it appears that with the job market as it is now, and with the equity that so many folks have in their homes to fall back on, our market is holding up in the face of increased interest rates.
Here are the city-by-city numbers: