Interest rates

[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.

[(former)FormerSanDiegan]

[quote=Huckleberry]

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

[/quote]

I don’t think we all agree rising interest rates automatically mean lower home prices.

If rising interest rates occur during an economic recovery (which has happend many times in the past) the opposite has occurred. (look at prices from 1965 to 2000)

Conversely, declining rates do not always translate into higher prices (look at rates and prices from 2006 to 2009).

[(former)FormerSanDiegan]

[quote=Huckleberry]

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

[/quote]

I don’t think we all agree rising interest rates automatically mean lower home prices.

If rising interest rates occur during an economic recovery (which has happend many times in the past) the opposite has occurred. (look at prices from 1965 to 2000)

Conversely, declining rates do not always translate into higher prices (look at rates and prices from 2006 to 2009).

[(former)FormerSanDiegan]

[quote=Huckleberry]

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

[/quote]

I don’t think we all agree rising interest rates automatically mean lower home prices.

If rising interest rates occur during an economic recovery (which has happend many times in the past) the opposite has occurred. (look at prices from 1965 to 2000)

Conversely, declining rates do not always translate into higher prices (look at rates and prices from 2006 to 2009).

[(former)FormerSanDiegan]

[quote=Huckleberry]

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

[/quote]

I don’t think we all agree rising interest rates automatically mean lower home prices.

If rising interest rates occur during an economic recovery (which has happend many times in the past) the opposite has occurred. (look at prices from 1965 to 2000)

Conversely, declining rates do not always translate into higher prices (look at rates and prices from 2006 to 2009).

[(former)FormerSanDiegan]

[quote=Huckleberry]

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

[/quote]

I don’t think we all agree rising interest rates automatically mean lower home prices.

If rising interest rates occur during an economic recovery (which has happend many times in the past) the opposite has occurred. (look at prices from 1965 to 2000)

Conversely, declining rates do not always translate into higher prices (look at rates and prices from 2006 to 2009).

[sdrealtor]

Absolutely agree with FSR,
Anecdotally what I see happen when rates raise is buyers on the fence start to panic. Rising rates increases the sense of urgency among borderline buyers and actually increases short term demand. I would not expect any fall in prices because of interest rates this year. If you jumped off the fence you probably should plan on getting comfortable where you are for a while longer and start ramping up your savings.

[sdrealtor]

Absolutely agree with FSR,
Anecdotally what I see happen when rates raise is buyers on the fence start to panic. Rising rates increases the sense of urgency among borderline buyers and actually increases short term demand. I would not expect any fall in prices because of interest rates this year. If you jumped off the fence you probably should plan on getting comfortable where you are for a while longer and start ramping up your savings.

[sdrealtor]

Absolutely agree with FSR,
Anecdotally what I see happen when rates raise is buyers on the fence start to panic. Rising rates increases the sense of urgency among borderline buyers and actually increases short term demand. I would not expect any fall in prices because of interest rates this year. If you jumped off the fence you probably should plan on getting comfortable where you are for a while longer and start ramping up your savings.

[sdrealtor]

Absolutely agree with FSR,
Anecdotally what I see happen when rates raise is buyers on the fence start to panic. Rising rates increases the sense of urgency among borderline buyers and actually increases short term demand. I would not expect any fall in prices because of interest rates this year. If you jumped off the fence you probably should plan on getting comfortable where you are for a while longer and start ramping up your savings.

[sdrealtor]

Absolutely agree with FSR,
Anecdotally what I see happen when rates raise is buyers on the fence start to panic. Rising rates increases the sense of urgency among borderline buyers and actually increases short term demand. I would not expect any fall in prices because of interest rates this year. If you jumped off the fence you probably should plan on getting comfortable where you are for a while longer and start ramping up your savings.

[scaredyclassic]

it’s impossible to time interest rates, isn’t it? you’re just sort of at the mercy of this swirling sea of rates. the house price is something you can control, but you can only buy around the time when you’re comfortable with a rate. And it’ll never feel good, since if it’s falling, you’ll feel like, hell, if I only wait a while it’ll be lower, and if it’s rising, you’ll think goddamnit, it’s got to level off and fall soon. so basically it’s always going to be painful.

does it all come down to why interestr ates are rising in terms of its effect on housing prices?

why a re interest rates rising?

[scaredyclassic]

it’s impossible to time interest rates, isn’t it? you’re just sort of at the mercy of this swirling sea of rates. the house price is something you can control, but you can only buy around the time when you’re comfortable with a rate. And it’ll never feel good, since if it’s falling, you’ll feel like, hell, if I only wait a while it’ll be lower, and if it’s rising, you’ll think goddamnit, it’s got to level off and fall soon. so basically it’s always going to be painful.

does it all come down to why interestr ates are rising in terms of its effect on housing prices?

why a re interest rates rising?

[scaredyclassic]

it’s impossible to time interest rates, isn’t it? you’re just sort of at the mercy of this swirling sea of rates. the house price is something you can control, but you can only buy around the time when you’re comfortable with a rate. And it’ll never feel good, since if it’s falling, you’ll feel like, hell, if I only wait a while it’ll be lower, and if it’s rising, you’ll think goddamnit, it’s got to level off and fall soon. so basically it’s always going to be painful.

does it all come down to why interestr ates are rising in terms of its effect on housing prices?

why a re interest rates rising?

[scaredyclassic]

it’s impossible to time interest rates, isn’t it? you’re just sort of at the mercy of this swirling sea of rates. the house price is something you can control, but you can only buy around the time when you’re comfortable with a rate. And it’ll never feel good, since if it’s falling, you’ll feel like, hell, if I only wait a while it’ll be lower, and if it’s rising, you’ll think goddamnit, it’s got to level off and fall soon. so basically it’s always going to be painful.

does it all come down to why interestr ates are rising in terms of its effect on housing prices?

why a re interest rates rising?

[Author]

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