Today’s Most Prevalent Rates
- 30YR FIXED - 4.375-4.5%
- FHA/VA - 4.0-4.25%
- 15 YEAR FIXED - 3.625-3.75%
- 5 YEAR ARMS - 3.0-3.5%
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This is going to be a shock to housing market. We could experience another 2015. Maybe you buy houses for cheap later this year.
Good luck!
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In the good old days before Bush and Greenspan allowed banks and Fannie and Freddie to fuck up the real estate market, stocks and real estate went different paths. Now BA real estate at least is tied to stocks.
Remember it was me that first mentioned a stock correction. I don’t care, have only 5% in stocks. Just hope the government does not do something stupid like in 2005 or 1930…
It may sound crazy but it may actually make houses even more expensive. There are no more move up buyers. Who wants to get out of their mid 2 interests rate and pay mid 4? With less property tax and mortgage interests deduction adding insult to injury. Inventory will get even more scarce.
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You are saying that the high end will hurt, low and mid end will rise. That’s already the case now
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@manch is right. All people who locked in low rates and want to trade up will now balk at the high rates for bigger/trophy houses. So that means reduction in trade-up buyers ( Less of Condo/TH to Sunnyvale SFR move up, Less of Sunnyvale SFR to Los Altos SFR moveup and so on ). High end will hurt.
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Just saw this great stat. Rate went up more, at twice the speed, back in 2013. But housing market didn’t feel a thing… So will it have much effect this time around?
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Do you already see many people opt for ARM right now?
There might be ups and downs, but the long term trend is still up
By long term, I mean the next 5-7 years.