I was hoping to buy a house in the near future. but damn this 6.5% is quite a lot more than i expected.
Its only going higher. Double digits within 5-10 years. If not sooner. We are spoiled. My parents bought their first home in 80`s @ 13%..and they paid it off early. We got our jumbo @ 5.535..and I dont expect to ever see these numbers in my lifetime again.
i wonder if in a way if you dont own a home, if your kinda hedged against interest rates. If they rise you're obviously paying more however but home prices will fall as well
If I were seeking to buy a home right now I would not hesitate. Rates are still VERY attracted at 6.5%..PLUS it is a total buyers market. Go for it! And good luck.
greenspan is on the record saying the world is likely to be trading US treasuries at 8% at LEAST in the next decade or two, 6.5% will look cheap some years from now
Was that the same GreenScam who preached, "... everybody should have an ARM..."? What, so we all could reset at 8%+?
This is it. This is end game. If mortgage rates continue to tweak higher it will cause home prices to fall and the trillions in MBS will follow in lock-step. Next time Bernanke is on TV he's going to be crying.
That's the risk. Some people would rather wait and hope prices fall further because of higher rates and pay less for a property but more on a monthly basis. Personally,I would look for a good deal now and take advantage of the low rates.If you're buying somewhere for the long term,in 10 years time your property will be worth more and you will be laughing at how cheap your payments are compared to what's on offer then.
Forget the next TV appearance. Think bigger. Rates are going higher long term. Not in a straight line..but up they will go. History says it.