Interest rates

[JC2]

Well, it’s official, quickly rising interest rates have now frozen this already cold potential buyer. Is there any reason to think interest rates could tick back down where they came from? (barring a democratic block of the tax break extension which won’t happen). If not, I was made to believe that rates would only very slowly rise/ stay flat in the near future, not jump 0.875 in 4-6 weeks. If this is the new reality with rates, how long until we can expect a downturn in prices that would result in a comparable monthly payment that one could have secured in October? i.e. What is that lag time between risen rates and the resulting decrease in home price?

[CA renter]

I think it will take a month or two before you see any effects from the higher rates. That being said, rates are still very low, so am not sure we’ll see much of an effect on pricing just yet. IMHO, the 10-year needs to get to around 4% before we see any real movements, and since the govt is the mortgage market, they just might find a way to keep the spread between the 10-year and mortgage rates very low.

Remember, higher rates are a GOOD thing if you’re a buyer. It’s best to sell when rates are low, and best to buy when rates are high, all else being equal.

[CA renter]

I think it will take a month or two before you see any effects from the higher rates. That being said, rates are still very low, so am not sure we’ll see much of an effect on pricing just yet. IMHO, the 10-year needs to get to around 4% before we see any real movements, and since the govt is the mortgage market, they just might find a way to keep the spread between the 10-year and mortgage rates very low.

Remember, higher rates are a GOOD thing if you’re a buyer. It’s best to sell when rates are low, and best to buy when rates are high, all else being equal.

[CA renter]

I think it will take a month or two before you see any effects from the higher rates. That being said, rates are still very low, so am not sure we’ll see much of an effect on pricing just yet. IMHO, the 10-year needs to get to around 4% before we see any real movements, and since the govt is the mortgage market, they just might find a way to keep the spread between the 10-year and mortgage rates very low.

Remember, higher rates are a GOOD thing if you’re a buyer. It’s best to sell when rates are low, and best to buy when rates are high, all else being equal.

[CA renter]

I think it will take a month or two before you see any effects from the higher rates. That being said, rates are still very low, so am not sure we’ll see much of an effect on pricing just yet. IMHO, the 10-year needs to get to around 4% before we see any real movements, and since the govt is the mortgage market, they just might find a way to keep the spread between the 10-year and mortgage rates very low.

Remember, higher rates are a GOOD thing if you’re a buyer. It’s best to sell when rates are low, and best to buy when rates are high, all else being equal.

[CA renter]

I think it will take a month or two before you see any effects from the higher rates. That being said, rates are still very low, so am not sure we’ll see much of an effect on pricing just yet. IMHO, the 10-year needs to get to around 4% before we see any real movements, and since the govt is the mortgage market, they just might find a way to keep the spread between the 10-year and mortgage rates very low.

Remember, higher rates are a GOOD thing if you’re a buyer. It’s best to sell when rates are low, and best to buy when rates are high, all else being equal.

[scaredyclassic]

I think this has been covered in other threads but historically Inc interest rate doesn’t correlate w lower price. Sure seems to me like it should. But it hasn’t. Also I don’t understand the “I was made to believe” comment. Always remember that whatever conventional wisdom is of the news says it’s the opp.

[scaredyclassic]

I think this has been covered in other threads but historically Inc interest rate doesn’t correlate w lower price. Sure seems to me like it should. But it hasn’t. Also I don’t understand the “I was made to believe” comment. Always remember that whatever conventional wisdom is of the news says it’s the opp.

[scaredyclassic]

I think this has been covered in other threads but historically Inc interest rate doesn’t correlate w lower price. Sure seems to me like it should. But it hasn’t. Also I don’t understand the “I was made to believe” comment. Always remember that whatever conventional wisdom is of the news says it’s the opp.

[scaredyclassic]

I think this has been covered in other threads but historically Inc interest rate doesn’t correlate w lower price. Sure seems to me like it should. But it hasn’t. Also I don’t understand the “I was made to believe” comment. Always remember that whatever conventional wisdom is of the news says it’s the opp.

[scaredyclassic]

I think this has been covered in other threads but historically Inc interest rate doesn’t correlate w lower price. Sure seems to me like it should. But it hasn’t. Also I don’t understand the “I was made to believe” comment. Always remember that whatever conventional wisdom is of the news says it’s the opp.

[Huckleberry]

Agreed, this interest rate rise has nailed me firmly on the fence.

We all know that rising interest rates means lower home prices as it knocks more potential buyers (demand) out of the market.

The last thing I want is to run out and purchase just because rates are going up, just to get hammered with decreasing home values…

Give it until beginning of February and we will start seeing many sellers realizing they need to lower prices if they really want to sell.

[Huckleberry]

Agreed, this interest rate rise has nailed me firmly on the fence.

We all know that rising interest rates means lower home prices as it knocks more potential buyers (demand) out of the market.

The last thing I want is to run out and purchase just because rates are going up, just to get hammered with decreasing home values…

Give it until beginning of February and we will start seeing many sellers realizing they need to lower prices if they really want to sell.

[Huckleberry]

Agreed, this interest rate rise has nailed me firmly on the fence.

We all know that rising interest rates means lower home prices as it knocks more potential buyers (demand) out of the market.

The last thing I want is to run out and purchase just because rates are going up, just to get hammered with decreasing home values…

Give it until beginning of February and we will start seeing many sellers realizing they need to lower prices if they really want to sell.

[Huckleberry]

Agreed, this interest rate rise has nailed me firmly on the fence.

We all know that rising interest rates means lower home prices as it knocks more potential buyers (demand) out of the market.

The last thing I want is to run out and purchase just because rates are going up, just to get hammered with decreasing home values…

Give it until beginning of February and we will start seeing many sellers realizing they need to lower prices if they really want to sell.

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