Because of the continuous secular decline in interest rates, assumable financing has been out-of little question for a long time. However, provided both growth of fund insured from the Federal Houses Government (FHA) and you can recent rise in rates, this example does changes quickly. Having fun with research off Ca, we very first document the latest remarkable rise in FHA-covered financing because the 2007. I then obtain the new theoretic impact out of capitalizing assumable capital for the home cost due to the fact interest levels boost and you may imitate the result into the costs out of home offered that have assumable FHA financing. Results are economically high and you may browsing partially offset declines within the domestic prices regarding the highest financial prices. 继续阅读 →