Mortgage Rates Could Reach 8% in 2010

Buzz in the industry is that rising mortgage rates could dampen home sales. Just how high could mortgage rates go? Industry chatter says 8%. Mortgage rates have not been as high as 8% in a decade. Could it happen? Surely. There was a time when conforming 30 year fixed mortgage rates were in the teens? How does it happen? The right economic conditions. If mortgage rates do shoot up to 8% home prices better be awfully low. If not we could see home sales at a snails pace and be in for a long economic drought.