Let's remember that rate is still lower than just a few years ago, and the adjustable rate is still enticing and in the 2%'s. If you are budgeting, and inflation is eating into your checkbook, then a higher rate could make a difference. We have not seen the effect of rates slowing down the pace just yet, but it is something I am watching closely. The fear among economists is that if the government raises rates too quickly, it could send the economy into a recession. It's a delicate balance to maintain right now.