4% 30 Year Mortgage

[Anonymous]

[quote=an][quote=deadzone]For you apparently. Like SDR perhaps math isn’t your strong suit. Do you also dispute that interest rates are going up? Who cares if SD rates are slightly lower or higher than the national average, that is irrelevant. They are going up everywhere at roughly the same rate. SDR thinks SD is isolated in some type of a utopian economic bubble. Sorry it doesn’t work that way. Everything is connected to the Fed.[/quote]
Nope, just you. No one ever said rates in San Diego is lower. You obviously have no idea what goes into getting a particular rate.[/quote]

Rates are UP across the board, and only going higher. There is no example for any type of loan, for any city, that rates have not gone up substantially in the last few months.

[sdrealtor]

[quote=deadzone][quote=an][quote=deadzone]For you apparently. Like SDR perhaps math isn’t your strong suit. Do you also dispute that interest rates are going up? Who cares if SD rates are slightly lower or higher than the national average, that is irrelevant. They are going up everywhere at roughly the same rate. SDR thinks SD is isolated in some type of a utopian economic bubble. Sorry it doesn’t work that way. Everything is connected to the Fed.[/quote]
Nope, just you. No one ever said rates in San Diego is lower. You obviously have no idea what goes into getting a particular rate.[/quote]

Rates are UP across the board, and only going higher. There is no example for any type of loan, for any city, that rates have not gone up substantially in the last few months.[/quote]

Actually I think 10/1 has not. A few months ago they barely existed and pricing was awful as no reason to take one. Now coming back with sharper pricing. Not saying they are down but definitely not up substantially. It doesn’t work how you think it works

[sdrealtor]

House in Encinitas just closed for $6M which is $300K above asking so a bidding war on it. It closed in 7 days! Wow those lenders are fast these days and congrats for locking in while rates are still low!

[sdrealtor]

[quote=evolusd]Selling my mom’s townhome up in LA. Buyer’s loan has a rate of 4.875%. Ouch.[/quote]

Yup condo rates are higher and must not have great credit or good down. Thats about 0.5% above current market for good buyers

[an]

[quote=deadzone]Rates are UP across the board, and only going higher. There is no example for any type of loan, for any city, that rates have not gone up substantially in the last few months.[/quote]
Strawman

[XBoxBoy]

[quote=scaredyclassic]
The Lake Wobegon effect
The characterization that “all the women are strong, all the men are good-looking, and all the children are above average” [/quote]

It’s fascinating to me that the characterization starts with, “all the women are strong” instead of something like “all the women are pretty” or some other stereotype of women. I’m not really sure what it says about gender stereotypes that the women are defined as strong and the men are good-looking, but I like it.

[Coronita]

[quote=sdrealtor]House in Encinitas just closed for $6M which is $300K above asking so a bidding war on it. It closed in 7 days! Wow those lenders are fast these days and congrats for locking in while rates are still low![/quote]

lol

[Anonymous]

[quote=an][quote=deadzone]Rates are UP across the board, and only going higher. There is no example for any type of loan, for any city, that rates have not gone up substantially in the last few months.[/quote]
Strawman[/quote]

So rates are not going up? Okay keep living in your fantasy land. Only a matter of time before it matters. San Diego RE is not immune to interest rates.

[sdrealtor]

Operators are standing by!

[limkotir]

Does anyone have historical data that highlights the correlation and causation effect of high interest rates to San Diego home sales volume and price. Maybe overlay interest rate over one of Rich’s graphs.

Simply put: how does high rate (e.g. 6% 30 year mortgage) affect sales volume, and sale price?

Home prices, like many complex real world Y-variable on a mathematical equation, probably are impacted by a handful of dynamic X variables (X1…X2…X3…etc.), it probably is never that simple and straight forward if X1 happens (interest rate), then Y will occur (sales price).

Looking to get educated by the smarter and more educated folks here! Thanks.

[Coronita]

Ok, let’s dissect this…

[quote=deadzone]
So rates are not going up? Okay keep living in your fantasy land. Only a matter of time before it matters. San Diego RE is not immune to interest rates.
[/quote]

Part 1
[quote=deadzone]
So rates are not going up?
[/quote]

Who on this thread is arguing that rates aren’t going up? Name one person on this thread….

Part 2
[quote]
Okay keep living in your fantasy land. Only a matter of time before it matters. San Diego RE is not immune to interest rates.
[/quote]

No one, except you, is making any predictions on when rates will start affecting purchases. You, however, are hell bent on “proving” it’s soon.

Let’s hypothetically say that it’s 10 years (length of a 10/1 arm) before rates really matter. Did you win? Yes, from an argument perspective. From a financial/home purchase perspective, you probably lost. If you’re going to be waiting 10 years before your first home purchase, ouch. Again, the only person you are arguing with is yourself.

Hope it’s worth it for you.

[sdrealtor]

[quote=limkotir]Does anyone have historical data that highlights the correlation and causation effect of high interest rates to San Diego home sales volume and price. Maybe overlay interest rate over one of Rich’s graphs.

Simply put: how does high rate (e.g. 6% 30 year mortgage) affect sales volume, and sale price?

Home prices, like many complex real world Y-variable on a mathematical equation, probably are impacted by a handful of dynamic X variables (X1…X2…X3…etc.), it probably is never that simple and straight forward if X1 happens (interest rate), then Y will occur (sales price).

Looking to get educated by the smarter and more educated folks here! Thanks.[/quote]

The challenge with that approach is rates dont rise in a vacuum. Often they rise in a booming economy or with inflation which is bullish for home prices.

[an]

[quote=sdrealtor][quote=limkotir]Does anyone have historical data that highlights the correlation and causation effect of high interest rates to San Diego home sales volume and price. Maybe overlay interest rate over one of Rich’s graphs.

Simply put: how does high rate (e.g. 6% 30 year mortgage) affect sales volume, and sale price?

Home prices, like many complex real world Y-variable on a mathematical equation, probably are impacted by a handful of dynamic X variables (X1…X2…X3…etc.), it probably is never that simple and straight forward if X1 happens (interest rate), then Y will occur (sales price).

Looking to get educated by the smarter and more educated folks here! Thanks.[/quote]

The challenge with that approach is rates dont rise in a vacuum. Often they rise in a booming economy or with inflation which is bullish for home prices.[/quote]
Exactly, which is why I keep on bringing up the 70s, because that gives us an extreme where rate went up drastically and housing price went up drastically too. So, I see no causation between rate vs prices.

[an]

[quote=Coronita]…Again, the only person you are arguing with is yourself.

Hope it’s worth it for you.[/quote]
Yep, which is why I keep staying strawman…

[an]

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