Please allow me to remind you about all the claims that interest rates could only go up: “The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed.”
Yes, at some point rates will go significantly higher, but given prices keep going lower, with 100% financing, will the net purchase cost continue to go lower? In other words, when interest rates increase significantly, will prices go down fast enough to outweigh the increased cost of capital?
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January 28th, 2012 at 10:06 am
OMG OMG OMG, the millenium has truly arrived. We placed an offer on a place last night.
Of course, the seller is a nutbag so I rate it about a 50-50 chance of us actually buying the place. We’ll see how it goes.
January 28th, 2012 at 11:41 am
Here’s another SF Bay Area based map I saw in the last week. This one includes the whole world!
February 2nd, 2012 at 9:42 am
[...] From burbed. [...]
February 2nd, 2012 at 11:53 am
Please allow me to remind you about all the claims that interest rates could only go up: “The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed.”
Yes, at some point rates will go significantly higher, but given prices keep going lower, with 100% financing, will the net purchase cost continue to go lower? In other words, when interest rates increase significantly, will prices go down fast enough to outweigh the increased cost of capital?
January 13th, 2013 at 5:08 am
[...] is also a great time to whip out this map of the region again, to remind everyone what makes The Bay Area So Special. Pay careful [...]