Mortgage rates up, jobs up, real estate down?

Mortgage rates have risen for the fifth straight week, something that many real estate analysts had expected many months ago. Additionally, job growth has continued to remain steady, with July's growth surprising most economists. If job growth continues at its current pace, many economists believe interest rates will have to go up. Could this push mortgage rates up surprisingly higher?

While mortgage rates have surprised analysts by staying lower longer, almost every analyst believes they will go up, and as rates go up the real estate market should cool. Does this mean that home prices will drop? Probably not in the short term, but it could cool the market enough to stabilize prices, or cause some minor depreciation in home prices in some areas.

One thing seems clear, however, if you are currently using a short term ARM to finance your home, you should think about some sort of fixed mortgage soon.