Fleming: Our Real Estate Sentiment Index survey doesn't ask the question why, but our data on real house prices indicates that even with higher rates, consumer house-buying power will remain strong and homes will remain affordable. An increasing desire for homeownership by Millennials and continued affordability will sustain demand.

GlobeSt.com: Is there a tipping point at which the rates will become too rich for buyers' blood?

Fleming: The survey indicates that the tipping point varies by state, but aggregated nationally it is about 5.4%, which is significantly higher than it is today.

GlobeSt.com: Is there any commonality to the types of homes that will be most in demand for purchase this spring?

Fleming: The first-time homebuyer will be the primary demand source this spring. So, the low- and mid-priced levels of the market, where first-time homebuyer demand is strongest.

GlobeSt.com: What else should our readers take away from this report?

Fleming: Our survey participants believe there is strong support for increased purchase volume this year, driven by increasing Millennial demand and rates remaining well below the tipping-point necessary to cause borrowers to withdraw from the market.

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IRVINE, CA—Rising interest rates won't slow housing demand, according to title agents answering First American Financial Corp. 's recent real estate sentiment index survey, who say an increasing desire for homeownership by Millennials and continued affordability will sustain demand, chief economist Mark Fleming tells GlobeSt.com. Fleming surveyed these agents and published the analysis in his Real Estate Sentiment Index.

In the report, Fleming said, “Overall, bullishness about transaction volumes in the coming year increased, largely driven by the rise in purchase transaction expectations. Overall, post-election confidence in the healthy trajectory of the economy increased purchase transaction expectations, but the likelihood of higher mortgage rates further tempered refinance prospects.”

He also said that rates are not expected to slow demand. “Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring. Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5% bode well for 2017 real estate.” We spoke with Fleming about why rising interest rates won't slow housing demand.

GlobeSt.com: Why do title agents and real estate professionals think rising interest rates won't slow demand?

Fleming: Our Real Estate Sentiment Index survey doesn't ask the question why, but our data on real house prices indicates that even with higher rates, consumer house-buying power will remain strong and homes will remain affordable. An increasing desire for homeownership by Millennials and continued affordability will sustain demand.

GlobeSt.com: Is there a tipping point at which the rates will become too rich for buyers' blood?

Fleming: The survey indicates that the tipping point varies by state, but aggregated nationally it is about 5.4%, which is significantly higher than it is today.

GlobeSt.com: Is there any commonality to the types of homes that will be most in demand for purchase this spring?

Fleming: The first-time homebuyer will be the primary demand source this spring. So, the low- and mid-priced levels of the market, where first-time homebuyer demand is strongest.

GlobeSt.com: What else should our readers take away from this report?

Fleming: Our survey participants believe there is strong support for increased purchase volume this year, driven by increasing Millennial demand and rates remaining well below the tipping-point necessary to cause borrowers to withdraw from the market.