My feeling is that rates will not go up dramatically next year as it would kill the “recovery” and would also put more downward pressure on home values, which it seems the gov. will do almost anything to prevent.
Probably not dramatically next year, but they should start to creep up. Yes, it will put downward pressure on home prices (price and value are different things – value is what you get compared to what you pay).
We are still prepared to keep renting but I am concerned that any further drop in prices could be offset by a rise in intrest rates.
If you are going to sell, this is a problem. If you are going to buy, it means that any down payment you do will go further. Yes, the interest rates and house prices move in opposite directions.
