I agree with your assessment. I almost bought a house last October… I wanted to offer 6.4% below asking price, but the listing agent essentially yelled at me and said that was too low, so I never wrote an offer. I should have written one, haggled and maybe split the difference, but I didn’t, so I’m still renting as I’ve had since I sold my house in the summer of 2005.
People are slowly catching up with what you wrote, which explains the fact that nominal mortgage interest rates will continue to go up, regardless of how much money the Fed prints. 30-yr fixed rates today have an APR of slightly over 5.0%. Not as low as two months ago, but may still be a steal.
