PORTSMOUTH — The Seacoast Board of Realtors reported a “sharply declined” real estate market in September, leading the board’s president to wonder if a

Are we heading for a residential real estate market correction?

I’m not sure if “correction” is the right term but we are certainly heading toward a slow down. Mortgage interest rates are beginning to rise which means that homes will become more expensive even if home price do not rise.

Rising mortgage interest rates will also edge out marginal and moderate income home buyers because they will no longer qualify for a mortgage at the amount they need to buy the house they want.

In my view, this will slow the housing recovery since fewer buyers will be in the market. This will affect the hugely expensive urban markets first and than the effects will ripple out to the more moderately priced suburbs.