I liked the simple rate example above. AN, you recently bought. I perceive a none-too-subtle shift to a more defensive posture in your posting. Most of us however have the same bunker mentality as before.
The odds of rates going up to 14% are about as high as prices staying where they are, nearly zero. Rates will stay low until our creditors say no mas, which appears is several years off. Meanwhile job losses will pick up steam and housing prices will continue to decline as lending standards perform the same task that higher interest rates did in previous cycles. Namely shrink the buyer pool.
I for one would love to see rates shoot up, but The govt is literally pissing into a black hole the money it is printing. This money will exhibit itself as soon as the asset deflation has unwound but I’m not counting on it to get me a home I can live comfortably in at a price I can afford.
In summary 570 seems too high to me for any home in MM. Then again, my stated housing preferences are very different from most here.
Josh
