Do interest rates worry you?

[ncrenter]

We sold our home and are now renting it back from the buyers, which is a great situation for us. I don’t know if we can hold out, like many of you, until the absolute “bottom”. But we would at least like to hold out on buying something until the end of the year, or maybe beginning of 2009.

The day our house sold, our realtor started pressuring us to buy. I can understand that – he’s trying to make a living. But recently he has begun scaring us about rising interest rates.

I have a lot of respect for the opinions on this board – do any of you worry that if you wait too long you will have to deal with interest rates that will price you out of the home you’ve been waiting so long to buy?

[jpinpb]

I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.

On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.

I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.

Bring it on.

[jpinpb]

I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.

On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.

I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.

Bring it on.

[jpinpb]

I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.

On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.

I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.

Bring it on.

[jpinpb]

I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.

On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.

I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.

Bring it on.

[jpinpb]

I’m not sure about how others feel about this, but IMHO, prices will have to fall considerably if the rates start going up. Otherwise, EVERYONE will be priced out. Think about it. You have to have excellent credit, 20% down, PROVE you can make payments. Eventually rates will rise, but if prices don’t come down significantly then who’s going to buy – or rather – who will be able to buy.

On the bright side, higher rates, more of a write-off? And if the prices come down significantly, even if the rates go up, I would think maybe there’s a chance over the next 30 years rates will come down and you can refinance.

I’m sure I’m not stating it eloquently and correctly, but I think rates rising will force the price of houses down. That will mean lower property tax, too.

Bring it on.

[HereWeGo]

Amen to that, jp.

[HereWeGo]

Amen to that, jp.

[HereWeGo]

Amen to that, jp.

[HereWeGo]

Amen to that, jp.

[HereWeGo]

Amen to that, jp.

[masayako]

I pretty much agree with jpinpb:

1. Interest rate rise
2. Less qualifier == Less buyer
3. More inventory
4. More supply == less demand
5. More houses to pick == lower price
6. Less pricy == even less urge to buy
(Why buy when you know it will be lower tomorrow?)
7. An equilibrium between “buy vs rent” will be reach at some point
8. bottom will be reached years from now…

The question is: What is the right thing to own during this time?

[masayako]

I pretty much agree with jpinpb:

1. Interest rate rise
2. Less qualifier == Less buyer
3. More inventory
4. More supply == less demand
5. More houses to pick == lower price
6. Less pricy == even less urge to buy
(Why buy when you know it will be lower tomorrow?)
7. An equilibrium between “buy vs rent” will be reach at some point
8. bottom will be reached years from now…

The question is: What is the right thing to own during this time?

[masayako]

I pretty much agree with jpinpb:

1. Interest rate rise
2. Less qualifier == Less buyer
3. More inventory
4. More supply == less demand
5. More houses to pick == lower price
6. Less pricy == even less urge to buy
(Why buy when you know it will be lower tomorrow?)
7. An equilibrium between “buy vs rent” will be reach at some point
8. bottom will be reached years from now…

The question is: What is the right thing to own during this time?

[masayako]

I pretty much agree with jpinpb:

1. Interest rate rise
2. Less qualifier == Less buyer
3. More inventory
4. More supply == less demand
5. More houses to pick == lower price
6. Less pricy == even less urge to buy
(Why buy when you know it will be lower tomorrow?)
7. An equilibrium between “buy vs rent” will be reach at some point
8. bottom will be reached years from now…

The question is: What is the right thing to own during this time?

[Author]

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