4 Reasons the Housing Bubble May Pop in 2014

Front Row Hype

by Rick Aristotle Munarrizby Dec 30th 2013 11:00AM

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The housing rebound is on a roll. Home prices continue to inch higher, and the number of indicators showing economic improvement suggest we’ll enjoy an even rosier 2014, when the Fed won’t have to do quite as much to keep the good times going.

However, there are also more than a few hints that in the year ahead, the housing market’s rebound may take a breather — or we may experience something far worse. Let’s take a look at some of the warning signs.

1. Mortgage Rates Are Moving Higher

The economy’s gradually getting on track, and that has resulted in interest rates inching higher. Naturally, the higher the rate, the less bang potential homebuyers get for their bucks.

There’s little reason to expect this trend to reverse. The Fed recently announced that it’s ready to begin tapering its rate-suppression plan by…

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