[quote=jficquette][quote=Scarlett]Looking forward to significant rate raise and the corresponding price decrease. My downpayment would be then 20% of a “better” house. Too old for a another starter property :).[/quote]

That’s the other shoe to drop. People buying now with ultra low rates are going to be in for a rude surprise if rates get to 8%.[/quote]

Do you mean that if rates get to 8% prices will drop and people buying nowadays (at about 5%) will be underwater?

I still have my doubts of both those 2 things will ever happen – – rates rise to 8% and prices dropping further…especially in the “better” school district areas. I wanted to believe it and hoped for it for a long time, but I don’t know anymore. Hope spring eternal though 🙂