Will rising mortgage rates spur home sales?

Historically, low mortgage interest rates have not spurred home buying - it is the increase from the low benchmark that stirs up investing. Consumers notice the mortgage price increase which helps speed up decisions. Naturally, consumers will hold off buying a commodity/good/service if they are eying decreasing prices. They will hold off in hopes that the price will continue to decrease. Once a good bottoms out and starts to increase again, consumers jump in. The average rate for a 30-year fix loan increased to 4.61% in the week ended Thursday from 4.46% the previous week, following a fourth week of increases, According to Freddie Mac. The average 15-year rate rose to 3.96% from 3.81%. These rates are the highest they've been since June. The author also explains how it is ironic that the Fed just issued QE2 and now mortgage rates are increasing. Capital was made cheaper and now mortgage rates respond by increasing. Economic thinking can be a funny thing, and like politics, there is no right answer. There are many left and right theories but we find ourselves in trouble when we start to enact opposing policies.