Mr.Mortgage predicts two bottoms…

[SD Realtor]

Just to weigh in here, I guess I don’t get much value in what Mr Mortgage has to say verses what I have read here and even posted here. Show me who out of the more level headed posted has not said high end was not in for more trouble.

I cannot even remember how many times I have posted about the bottoms not being equal, about how they will be skewed across housing types and locations. About how I viewed the market as more schizophrenic with much more choppiness and being particularly susceptible to future interest rate hikes into the future.

I am sorry but I just don’t see anything new or novel about the latest Mr Mortgage posting. I am not knocking the guy, I just dont see anything that is news to me.

[ralphfurley]

[quote=sdrealtor]The problem I continue to have with the gloomy prediction from many in the media (as well as some of the doomsayers her) is the fact that they are often accompanied by discliamers such as “If and when rates go up, those pressures will be even greater.” You are essentially saying you guys are all idiots as long as what I think and want to happen does. If it doesnt happen…then nevermind.
[/quote]
I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? [shrug]

In what scenario do interest rates increase and housing prices stay the same? Is that possible?

[ralphfurley]

[quote=sdrealtor]The problem I continue to have with the gloomy prediction from many in the media (as well as some of the doomsayers her) is the fact that they are often accompanied by discliamers such as “If and when rates go up, those pressures will be even greater.” You are essentially saying you guys are all idiots as long as what I think and want to happen does. If it doesnt happen…then nevermind.
[/quote]
I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? [shrug]

In what scenario do interest rates increase and housing prices stay the same? Is that possible?

[ralphfurley]

[quote=sdrealtor]The problem I continue to have with the gloomy prediction from many in the media (as well as some of the doomsayers her) is the fact that they are often accompanied by discliamers such as “If and when rates go up, those pressures will be even greater.” You are essentially saying you guys are all idiots as long as what I think and want to happen does. If it doesnt happen…then nevermind.
[/quote]
I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? [shrug]

In what scenario do interest rates increase and housing prices stay the same? Is that possible?

[ralphfurley]

[quote=sdrealtor]The problem I continue to have with the gloomy prediction from many in the media (as well as some of the doomsayers her) is the fact that they are often accompanied by discliamers such as “If and when rates go up, those pressures will be even greater.” You are essentially saying you guys are all idiots as long as what I think and want to happen does. If it doesnt happen…then nevermind.
[/quote]
I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? [shrug]

In what scenario do interest rates increase and housing prices stay the same? Is that possible?

[ralphfurley]

[quote=sdrealtor]The problem I continue to have with the gloomy prediction from many in the media (as well as some of the doomsayers her) is the fact that they are often accompanied by discliamers such as “If and when rates go up, those pressures will be even greater.” You are essentially saying you guys are all idiots as long as what I think and want to happen does. If it doesnt happen…then nevermind.
[/quote]
I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? [shrug]

In what scenario do interest rates increase and housing prices stay the same? Is that possible?

[sdrealtor]

Low rates for the foreseeable future…housing prices falling slower and slower…inflation raising the price of everything else and eventually incomes also. Voila!! Back in balance at some point in the future. Since about 2004 I always thought it would be around 2011 or 2012.

[sdrealtor]

Low rates for the foreseeable future…housing prices falling slower and slower…inflation raising the price of everything else and eventually incomes also. Voila!! Back in balance at some point in the future. Since about 2004 I always thought it would be around 2011 or 2012.

[sdrealtor]

Low rates for the foreseeable future…housing prices falling slower and slower…inflation raising the price of everything else and eventually incomes also. Voila!! Back in balance at some point in the future. Since about 2004 I always thought it would be around 2011 or 2012.

[sdrealtor]

Low rates for the foreseeable future…housing prices falling slower and slower…inflation raising the price of everything else and eventually incomes also. Voila!! Back in balance at some point in the future. Since about 2004 I always thought it would be around 2011 or 2012.

[sdrealtor]

Low rates for the foreseeable future…housing prices falling slower and slower…inflation raising the price of everything else and eventually incomes also. Voila!! Back in balance at some point in the future. Since about 2004 I always thought it would be around 2011 or 2012.

[Bob]

[quote]I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? In what scenario do interest rates increase and housing prices stay the same? Is that possible?[/quote]

I posted this in another thread, but it might help to answer your questions.

I have considerable knowledge of the bond market and fed policy. All I can say is trust me…the bond market is a bubble just waiting to burst. Back in Q1 when the Feds finally realized that demand for US treasuries was weakening, they took drastic measures of last resort…measures that Bernanke was hoping to avoid. Which is to say, the Feds started buying US treasuries in what some might describe as a last ditch panic effort to avoid a depression. So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels – and as a result, has created a real estate buying frenzy among investors and first timers.

The problem for the Fed, and they are openly discussing it now, is that in order to avoid continued deflation, they have created inflation, and potentially hyper inflation. Later this summer Bernanke will have to make a very important decision…which is to say, he will have to decide whether or not to pull back on future Fed investment in US treasuries. If he decides to pull out, you will see the stock market drop, and at the same time, you will see mortgage rates spike.

[Bob]

[quote]I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? In what scenario do interest rates increase and housing prices stay the same? Is that possible?[/quote]

I posted this in another thread, but it might help to answer your questions.

I have considerable knowledge of the bond market and fed policy. All I can say is trust me…the bond market is a bubble just waiting to burst. Back in Q1 when the Feds finally realized that demand for US treasuries was weakening, they took drastic measures of last resort…measures that Bernanke was hoping to avoid. Which is to say, the Feds started buying US treasuries in what some might describe as a last ditch panic effort to avoid a depression. So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels – and as a result, has created a real estate buying frenzy among investors and first timers.

The problem for the Fed, and they are openly discussing it now, is that in order to avoid continued deflation, they have created inflation, and potentially hyper inflation. Later this summer Bernanke will have to make a very important decision…which is to say, he will have to decide whether or not to pull back on future Fed investment in US treasuries. If he decides to pull out, you will see the stock market drop, and at the same time, you will see mortgage rates spike.

[Bob]

[quote]I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? In what scenario do interest rates increase and housing prices stay the same? Is that possible?[/quote]

I posted this in another thread, but it might help to answer your questions.

I have considerable knowledge of the bond market and fed policy. All I can say is trust me…the bond market is a bubble just waiting to burst. Back in Q1 when the Feds finally realized that demand for US treasuries was weakening, they took drastic measures of last resort…measures that Bernanke was hoping to avoid. Which is to say, the Feds started buying US treasuries in what some might describe as a last ditch panic effort to avoid a depression. So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels – and as a result, has created a real estate buying frenzy among investors and first timers.

The problem for the Fed, and they are openly discussing it now, is that in order to avoid continued deflation, they have created inflation, and potentially hyper inflation. Later this summer Bernanke will have to make a very important decision…which is to say, he will have to decide whether or not to pull back on future Fed investment in US treasuries. If he decides to pull out, you will see the stock market drop, and at the same time, you will see mortgage rates spike.

[Bob]

[quote]I really don’t understand how they keep interest rates under 5%. The Fed pumping money into treasuries? Then the treasuries bubble pops and we’re all going to die? In what scenario do interest rates increase and housing prices stay the same? Is that possible?[/quote]

I posted this in another thread, but it might help to answer your questions.

I have considerable knowledge of the bond market and fed policy. All I can say is trust me…the bond market is a bubble just waiting to burst. Back in Q1 when the Feds finally realized that demand for US treasuries was weakening, they took drastic measures of last resort…measures that Bernanke was hoping to avoid. Which is to say, the Feds started buying US treasuries in what some might describe as a last ditch panic effort to avoid a depression. So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels – and as a result, has created a real estate buying frenzy among investors and first timers.

The problem for the Fed, and they are openly discussing it now, is that in order to avoid continued deflation, they have created inflation, and potentially hyper inflation. Later this summer Bernanke will have to make a very important decision…which is to say, he will have to decide whether or not to pull back on future Fed investment in US treasuries. If he decides to pull out, you will see the stock market drop, and at the same time, you will see mortgage rates spike.

[Author]

Posts