Mortgage rates going down?

[The-Shoveler]

Delete wrong thread

[kev374]

What do you guys think of this analysis?

https://www.lombardiletter.com/u-s-housing-bubble-2017/8112/amp/

[flyer]

Of course the analysis discussed is possible, and taking a contrarian position is always a good way to sell a newsletter, but, imo, those who do best in real estate, as with some other investments, start at a young age, buy in a down cycle and hold. That’s what we’ve always done, and it’s worked out well.

Purchasing real estate in the current environment could be dicey, but if you can afford the risk, and really want/need to own property, you will weigh all factors and decide if you can live with your decision regardless of which way the economy swings.

[moneymaker]

I think there are a lot of factors that were left out of the article. Many people that were making money back in the last boom were plowing it back into the market or spending it foolishly. I think it will be a very volatile year, but the people who are smart with there money will be okay. I don’t think the root cause of the last bust was the adjustable mortgages so much as the job losses and I’m still not convinced that Trump can bring good paying jobs back, but I hope he can help. Could be a brutal year for healthcare as they have had over justified growth recently.

[The-Shoveler]

IMO what caused the last crash was crazy lending practices and over building.

Could the market slow as rates rise, maybe.

But I don’t see a big housing market crash myself.

They would need to start overbuilding then get the crazy lending and let that run a few more years.

Anyway IMO.

[Anonymous]

What caused the last crash was crazy lending practices.

Period.

[spdrun]

And giving people with good income but no assets 0% down loans (FHA/VA) — bank pays the down payment — after a 100% run up in prices, at 3.5% interest doesn’t qualify as crazy?

[Anonymous]

[quote=harvey]What caused the last crash was crazy lending practices.

Period.[/quote]

To be more precise, what caused the last bubble was crazy lending practices.

The crash was just a reconciliation with reality.

[The-Shoveler]

Well there are different levels of crazy lending.

Giving people with no income and no documentation 100% – 120% loans is really crazy.

Now give them 10 of those loans and we are talking really really crazy.

[FlyerInHi]

[quote=moneymaker]I think there are a lot of factors that were left out of the article. Many people that were making money back in the last boom were plowing it back into the market or spending it foolishly. I think it will be a very volatile year, but the people who are smart with there money will be okay. I don’t think the root cause of the last bust was the adjustable mortgages so much as the job losses and I’m still not convinced that Trump can bring good paying jobs back, but I hope he can help. Could be a brutal year for healthcare as they have had over justified growth recently.[/quote]

Job losses happened after the financial crash.

The Great Recession took economists by surprise in that, unlike previous recessions, it was not an unemployment induced recession. It was a financial induced recession.

[Author]

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