Do interest rates worry you?

[JWM in SD]

Precisely Capeman. Right now, the Fed Reserve has Negative Non-Borrowed reserves which means that on balance, there are more banks that have had to borrow their reserves from the Fed in order to stay liquid. They are technically insolvent. How long does anyone here really think that situation can last before our foreign creditors and the bond market in general doesn’t have their say about that situation and make a drastic adjustment to compensate for it???

[dumbrenter]

Another consequence of rising interest rates is that the money flocking the MBS, CDO will flee back to where they came from in an instant. Why deal with this crap when you can get a better rate from a more stable place. There will be no more “easy money” coming down the chain and the banks will be forced to realize whatever they can get out of the properties they are sitting on right now. In addition to this resulting in lower prices, the new mortgage applicants now have to prove that they “deserve” a loan in addition to putting a good percentage as a down payment. So why should anybody who has good credit, can pay >20% down in cash and has a good stream of documented income worry about rising interest rates?

[dumbrenter]

Another consequence of rising interest rates is that the money flocking the MBS, CDO will flee back to where they came from in an instant. Why deal with this crap when you can get a better rate from a more stable place. There will be no more “easy money” coming down the chain and the banks will be forced to realize whatever they can get out of the properties they are sitting on right now. In addition to this resulting in lower prices, the new mortgage applicants now have to prove that they “deserve” a loan in addition to putting a good percentage as a down payment. So why should anybody who has good credit, can pay >20% down in cash and has a good stream of documented income worry about rising interest rates?

[dumbrenter]

Another consequence of rising interest rates is that the money flocking the MBS, CDO will flee back to where they came from in an instant. Why deal with this crap when you can get a better rate from a more stable place. There will be no more “easy money” coming down the chain and the banks will be forced to realize whatever they can get out of the properties they are sitting on right now. In addition to this resulting in lower prices, the new mortgage applicants now have to prove that they “deserve” a loan in addition to putting a good percentage as a down payment. So why should anybody who has good credit, can pay >20% down in cash and has a good stream of documented income worry about rising interest rates?

[dumbrenter]

Another consequence of rising interest rates is that the money flocking the MBS, CDO will flee back to where they came from in an instant. Why deal with this crap when you can get a better rate from a more stable place. There will be no more “easy money” coming down the chain and the banks will be forced to realize whatever they can get out of the properties they are sitting on right now. In addition to this resulting in lower prices, the new mortgage applicants now have to prove that they “deserve” a loan in addition to putting a good percentage as a down payment. So why should anybody who has good credit, can pay >20% down in cash and has a good stream of documented income worry about rising interest rates?

[dumbrenter]

Another consequence of rising interest rates is that the money flocking the MBS, CDO will flee back to where they came from in an instant. Why deal with this crap when you can get a better rate from a more stable place. There will be no more “easy money” coming down the chain and the banks will be forced to realize whatever they can get out of the properties they are sitting on right now. In addition to this resulting in lower prices, the new mortgage applicants now have to prove that they “deserve” a loan in addition to putting a good percentage as a down payment. So why should anybody who has good credit, can pay >20% down in cash and has a good stream of documented income worry about rising interest rates?

[waiting hawk]

I have been PRAYING for rates to go up 8%+ since 2006. My hopes have not been anwsered. The answer is in 2009 you will see rates at 6-6.5%. Do not worry to much about it.

[waiting hawk]

I have been PRAYING for rates to go up 8%+ since 2006. My hopes have not been anwsered. The answer is in 2009 you will see rates at 6-6.5%. Do not worry to much about it.

[waiting hawk]

I have been PRAYING for rates to go up 8%+ since 2006. My hopes have not been anwsered. The answer is in 2009 you will see rates at 6-6.5%. Do not worry to much about it.

[waiting hawk]

I have been PRAYING for rates to go up 8%+ since 2006. My hopes have not been anwsered. The answer is in 2009 you will see rates at 6-6.5%. Do not worry to much about it.

[waiting hawk]

I have been PRAYING for rates to go up 8%+ since 2006. My hopes have not been anwsered. The answer is in 2009 you will see rates at 6-6.5%. Do not worry to much about it.

[NotCranky]

NCrenter,
It is not a black and white as your realtor wants to make it out to be or as a few poster here would have it either. I guess some bears and realtors are not capable or thinking in a circumspect and nuanced manner on this topic. Maybe your realtor hasn’t been exposed the light of reason but the local bears have and still echo the same things they did before, namely that “rates absolutely affect prices across the board, all the time, all circumstances”. I advise you to expand you studies.

I have been coached to have the opinion that rates won’t change much in the next year, for what it is worth.

I certainly would not worry about making a buying decision exclusively on rates. There are so many variables worthy of considering.

[NotCranky]

NCrenter,
It is not a black and white as your realtor wants to make it out to be or as a few poster here would have it either. I guess some bears and realtors are not capable or thinking in a circumspect and nuanced manner on this topic. Maybe your realtor hasn’t been exposed the light of reason but the local bears have and still echo the same things they did before, namely that “rates absolutely affect prices across the board, all the time, all circumstances”. I advise you to expand you studies.

I have been coached to have the opinion that rates won’t change much in the next year, for what it is worth.

I certainly would not worry about making a buying decision exclusively on rates. There are so many variables worthy of considering.

[NotCranky]

NCrenter,
It is not a black and white as your realtor wants to make it out to be or as a few poster here would have it either. I guess some bears and realtors are not capable or thinking in a circumspect and nuanced manner on this topic. Maybe your realtor hasn’t been exposed the light of reason but the local bears have and still echo the same things they did before, namely that “rates absolutely affect prices across the board, all the time, all circumstances”. I advise you to expand you studies.

I have been coached to have the opinion that rates won’t change much in the next year, for what it is worth.

I certainly would not worry about making a buying decision exclusively on rates. There are so many variables worthy of considering.

[NotCranky]

NCrenter,
It is not a black and white as your realtor wants to make it out to be or as a few poster here would have it either. I guess some bears and realtors are not capable or thinking in a circumspect and nuanced manner on this topic. Maybe your realtor hasn’t been exposed the light of reason but the local bears have and still echo the same things they did before, namely that “rates absolutely affect prices across the board, all the time, all circumstances”. I advise you to expand you studies.

I have been coached to have the opinion that rates won’t change much in the next year, for what it is worth.

I certainly would not worry about making a buying decision exclusively on rates. There are so many variables worthy of considering.

[Author]

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