Mortgage rates have risen significantly, climbing more than a percentage since April from 3.4% to 4.51%, according to a July 18 CNN Money report. Despite this, the housing recovery will continue and people are still encouraged to buy homes, reports Fannie Mae.

In a new study comparing rates through the 1990s and early 2000s, when mortgage rates climbed significantly, Fannie Mae found that the rise had little or no impact on buyers’ decisions to purchase homes. When the economy is doing well, interest rates go up, as do employment and income, the article says. This rise in available funds leads to consumers buying homes, even if at higher prices.

At the recent Single Family Investment roundtable, The Agency’s CEO and co-founder Mauricio Umansky shared his thoughts on the effect of rising mortgage rates. Umansky believes the increase can drive real estate growth because buyers do not want to risk percentages spiking even higher. According to Mauricio, many consumers have the funds available and are encouraged to spend before rates climb.

Despite the increase, the current 4.51% mortgage rate is considered affordable compared to the historical average.

Photo Above: 39 Mount San Jacinto Circle, Rancho Mirage, CA