one of the best years I had was during that period of time in the early '80's when interest rates were at 21 percent for a week....they settled down at 18 percent.... we did 40 year negative amortizations.... IT'S ALL ABOUT THE PAYMENT.... people need housing.... it's a survival requirement to have shelter.... and they'll get it no matter what it takes...refinancing can happen after the market changes again....

Is Wal Mart hiring greeters?

Contrary to popular opinion, real estate didn't collapse or die when rates were higher.  As stated by many here, people still wanted to buy and sell ... or had to.  

Good morning Janice. No matter what the interest rate is, folks still need to sell and buy, that is not going to change. Did plenty of business when rates were higher than 8%.

well last time the rates were 8% my business was fabulous.  It mean people could actually make some return on savings and CDs.

In my market area it would bring us to our knees. It would cause so many would-be buyers to become renters.

The majority of my clients don't need financing.  We'll be back to the late 70's & early 80's again like Barbara mentioned.  My favourite book back then was "How to make money when there's blood in the streets"

It would certainly have an impact in the short term, for one thing there would be a large group of fence sitters kicking themselves in the butt! In the long term not so much. People and markets adjust.

It will definitely shift our current mindsets.   There will be an adjustment period and we have had rates much higher in the past and been successful so we can do it again!

Not to worry, Janice.  We aren't going to see 8% rates for a LONG time.  The Fed is still in an accomodative mode, and realizes that for a variety of reasons, whenever it begins to increase rates, it must do so slowly.

Frankly, the economy is not as strong as some would have you believe...and then there's the fact that the US is part of a larger, world economy...I read yesterday that the ECB stated that Greek banks might not open on Monday.

Our rates rising affects other economies as well.

Then there is the fact that so many HELOCs are starting to reset.  This will have an impact on housing over the next several years.

So 8% rates?  Worry about the boogeyman instead- he's more likely to appear than 8% rates will anytime soon... 

Folks still purchased properties when interest rates were 18-21%. It is not about the market, it is about what you do.

Many of us have been through higher interest rates and still survived. I remember when interest rates were at 16% and we thought that if they got back down to 12%, things would be back to normal. 

Consumers have to adjust to reality.

I started in the business when it was 11% and sold 46 homes my first year. Successful people make adjustments.

It will slow down business in general but I remember the 70's when interest was in the double digits and life went on.

It won't do a thing to my business . . . since interest rates never hurt it before.  A rise in real estate will only mean one thing . . . a DROP OF REAL ESTATE VALUES!  Prices will have to be lowered in order to be affordable to buyers.

It's either going to be the banksters making the money with inflated interest rates, or sellers with equity.  When they BOTH want to make a killing, the bubble bursts.

Rates go up, prices go down. 

It's all relative. Affordability is based on the monthly payments. Today buyers are frightened by the high prices but rates are so low their payments are the same as buyers that paid 1/2 the price for the same home at double the rates 15-20 years ago.

BTW: I took one of those 40 year negative amortization ARMs in 1988. Luckily it went down, down, down and equity went up up up. Markets go in cycles.

I made loan app on my first house in Houston when the prime was 21%.  The bulder bought the rate down to 12.75%.  We thought we got a deal.  People will still buy at 8%.  Of course, I'm hearing whining about 4.25%!

It may thin the ranks of the mortgage loan officers. I always felt there were too many chasing too few loans anyway.

It depends how you get there. When we went from 18% rates in the 80s down to 8% in the 90s, I thought I was in heaven. I thought I would never see rates that low!

Having a roof over people's head is a basic requirement.  It may be difficult for many to buy but they'll adjust to the conditions and probably scale down their wish list to buy something they can afford.

I'm not sure but I'd be interested to know for sure most definitely. I realize that is redundant

Initially, it would slow business. But if you follow the history of interest rates, 8% isn't that high.

It will make assumable mortgages gold. 

We are already seeing first time buyers staying home longer with parents...this would certainly affect the market.

If it was implemented tomorrow business  would be halved instantaneously. Loan approvals would fly out the window pretty quickly.

There will be fewer home buyers.

Done right away it would shut down the indestry.

8% will slow things down, but after a bit things will get back to more normal workings.

It will hurt it.

Real estate and life are always changing.  We learn to adapt.

If it rises to that very quickly and will stop the market in its tracks. Prices will free fall.

What would it do to the country?

Janice - Most likely higher 8.0% interest rate will have impact on real estate business.

People will buy homes no matter what.  It will mean the purchase amount will go down.

I think we would see a lot of creative alternative financing, like the was back in the 1980"s.