Rising interest rates have closed the door on #1 trillion in loans, said Scott Buchta, an investment strategist at Braver Stern Securities in Chicago.

As rates on loans guaranteed by FHA rise above 5 percent, fewer and fewer buyers qualify. LendingTree Chief Economist Cameron Findlay pointed out that a 30-basis-point rise in the 10-year Treasury note’s yield would typically add about #45 per month to the payments on a #250,000 mortgage.

Should rates rise higher from here, you’ll start to have an impact on a purchase market that is just starting to recover, said Buchta.

Source: Reuters News, Al Yoon and Daniel Trotta