I still stand by my prediction that this was the absolute low in my lifetime. (Let’s see how well I do.)
Going forward following can happen.
(0)Economy recovers at fast pace – Rates zoom up and buyers snap up houses. Means you missed the golden chance. <-- HIGHLY UNLIKELY
(1) Economy recovers at slow pace with small crisis here and there. - Rates will creep up a little bit when everything is calm and drop down when there is stress coming close to this October levels. Prices stagnate. That means you will have your chance later. <--- HIGLY LIKELY
(2) There is a big crisis in the financial markets and then in the economy. - Mtg Rates will not fall because risk premiums will rise. House prices will fall. But you won't buy because you will be worried about your job and possibility of further drop in prices. Therefore you might as well forget about this. 🙂 <-- SOMEWHAT UNLIKELY
(3) Uncle Sam decides to offer you 3.5% mortgage. With tea party, republican congress, Chinese debt, rising budget deficit and slowly awakening bond market do you really think this could happen? <-- NO CHANCE
(4) Hyperinflation - 11% mortgage rates return. But house prices will rise in response to inflation too.
<-- HIGHLY UNLIKELY
