[quote=SD Realtor]
So yes what you said about being in the catbird seat for owners is true however we will absolutely see asset depreciation in those cases of high rates. The golden question is how much. Now if you will be holding the property anyway and have it as a rental then yes, You will be raking in monthly income while paying out on a 3.5 or 4% mortgage. Nice.
[/quote]
It will certainly be interesting to see what happens with 30 year fixed rate mortgages if rates to start a general trend upwards. There’s really no assets out there that can be levered with 30 year fixed rates other than residential properties. Bonds, commercial property, stock margin etc are all based on a short term floating rate when they are levered up.
If you’re lucky it will work like prop 13. You’ll get to keep the rate as long as you hold on to the property. If you’re not government will probably adjust your 30 year fixed rate higher in the name of fairness, especially if you’re renting a second home.
