Bank stocks rose Tuesday amid expectations that the Federal Reserve will not hike rates anytime soon.
Rates will have to rise as high as 7% before home purchases become unaffordable, economists at housing giant Freddie Mac say.
Bank of America Merrill Lynch highlights tools that could be useful for tracking the effect of higher rates on housing.
Foreclosure activity rose in May over the previous month, but it is no longer the threat it once was.
Home prices should continue to rise so long as rates do not rise too quickly, according to economist Michelle Meyer.
Atlantic Equities downgraded Wells Fargo and US Bancorp, two of the most profitable U.S. banks, citing declining mortgage revenue.
The number of underwater borrowers is declining though millions remain vulnerable to falling home prices.
Borrowers should be prepared for higher interest rates but if the economy improves, anobody is going to care," the CEO said.
The Consumer Financial Protection Bureau released a report that found consumers opting in for overdraft protection were vulnerable to higher costs.
Home prices in Phoenix are likely to continue to rise, although at a gentle pace, according to a report from Arizona State University.