1-2 months after the spike: Pending home sales and home-purchase mortgage applications typically decline slightly, though the effect isnt statistically significant. New home sales also decline modestly. 3 months after a spike: New home sales and existing home sales drop. That means that the May mortgage rate spike should show up most strongly in August new home sales and existing home sales, both of which will be reported later this month (on September 25 and September 19, respectively). Compared with the impact on refinancing, the impact of a rate spike on home-purchase mortgage applications and sales home volumes is very small and not always statistically significant.
For the original version including any supplementary images or video, visit http://www.forbes.com/sites/trulia/2013/09/11/how-long-before-mortgage-rates-hurt-housing/