rates moving up fast

[DWCAP]

I dont know FSD, I think it would be pretty hard to get a larger bump then was created by the 4.5% rates. IMO any crazyness to close will be ofset by the people who dropout cause they cant get unbelieveably good rates. Inventory sucks and prices are still falling; why buy a house you dont really like for an ok price just so you can get an ok interest rate? But maybe that is what you ment, increasing rate pressures will be met with increased desire to close NOW.

SD_R, I think youll be right if they hit 6% or so. Alot of people will step aside, theyll wait for the next waste of taxpayer money, or increased inflation, to buy down their morgages.

But what are you seeing? Do any of your clients seem to care?

[SD Realtor]

DW I agree that the 6% threshold seems to be the psychological barrier that you alluded to. So far nobody I am working with is 100% affected although there are many that are worried.

People do not care about housing prices as much as mortgage payments. I am not saying that is wise but people in general are not wise.

So yeah I agree with your statements pretty much 100%.

[SD Realtor]

DW I agree that the 6% threshold seems to be the psychological barrier that you alluded to. So far nobody I am working with is 100% affected although there are many that are worried.

People do not care about housing prices as much as mortgage payments. I am not saying that is wise but people in general are not wise.

So yeah I agree with your statements pretty much 100%.

[SD Realtor]

DW I agree that the 6% threshold seems to be the psychological barrier that you alluded to. So far nobody I am working with is 100% affected although there are many that are worried.

People do not care about housing prices as much as mortgage payments. I am not saying that is wise but people in general are not wise.

So yeah I agree with your statements pretty much 100%.

[SD Realtor]

DW I agree that the 6% threshold seems to be the psychological barrier that you alluded to. So far nobody I am working with is 100% affected although there are many that are worried.

People do not care about housing prices as much as mortgage payments. I am not saying that is wise but people in general are not wise.

So yeah I agree with your statements pretty much 100%.

[SD Realtor]

DW I agree that the 6% threshold seems to be the psychological barrier that you alluded to. So far nobody I am working with is 100% affected although there are many that are worried.

People do not care about housing prices as much as mortgage payments. I am not saying that is wise but people in general are not wise.

So yeah I agree with your statements pretty much 100%.

[(former)FormerSanDiegan]

DWCAP –
This is a very short term effect and I would expect it to be followed by a slack in demand. Net effect would be a shift in demand forward by a month or two. Yes, there is pressure for those making offers now or in escrow to close before rates spike higher.

People who have been in the market and may have made several offers and have already made a decision to buy are the ones I refer to. Those who are planning to buy in 3-6 months or more in the future are probably more compelled to hold off because of a spike in rates.

Anyway, its just an opinion, based on anecdotal evidence and hearsay.

[(former)FormerSanDiegan]

DWCAP –
This is a very short term effect and I would expect it to be followed by a slack in demand. Net effect would be a shift in demand forward by a month or two. Yes, there is pressure for those making offers now or in escrow to close before rates spike higher.

People who have been in the market and may have made several offers and have already made a decision to buy are the ones I refer to. Those who are planning to buy in 3-6 months or more in the future are probably more compelled to hold off because of a spike in rates.

Anyway, its just an opinion, based on anecdotal evidence and hearsay.

[(former)FormerSanDiegan]

DWCAP –
This is a very short term effect and I would expect it to be followed by a slack in demand. Net effect would be a shift in demand forward by a month or two. Yes, there is pressure for those making offers now or in escrow to close before rates spike higher.

People who have been in the market and may have made several offers and have already made a decision to buy are the ones I refer to. Those who are planning to buy in 3-6 months or more in the future are probably more compelled to hold off because of a spike in rates.

Anyway, its just an opinion, based on anecdotal evidence and hearsay.

[(former)FormerSanDiegan]

DWCAP –
This is a very short term effect and I would expect it to be followed by a slack in demand. Net effect would be a shift in demand forward by a month or two. Yes, there is pressure for those making offers now or in escrow to close before rates spike higher.

People who have been in the market and may have made several offers and have already made a decision to buy are the ones I refer to. Those who are planning to buy in 3-6 months or more in the future are probably more compelled to hold off because of a spike in rates.

Anyway, its just an opinion, based on anecdotal evidence and hearsay.

[(former)FormerSanDiegan]

DWCAP –
This is a very short term effect and I would expect it to be followed by a slack in demand. Net effect would be a shift in demand forward by a month or two. Yes, there is pressure for those making offers now or in escrow to close before rates spike higher.

People who have been in the market and may have made several offers and have already made a decision to buy are the ones I refer to. Those who are planning to buy in 3-6 months or more in the future are probably more compelled to hold off because of a spike in rates.

Anyway, its just an opinion, based on anecdotal evidence and hearsay.

[Reality]

[quote=SD Realtor]We may get some traction on the bear side. Rates are moving up quick. Prices tend to not react in lock step though but that indeed may knock some of the wind out of this rally. Of course if you are a buyer this hurts unless you are in cash. [/quote]

How will it hurt the buyers without cash? I know, higher interest rates, but like you write it helps with the “traction on the bear side”, meaning lower principle. There’s only so much buying power in the market and with the economy that’s only getting worse.

I’d rather get the low price than the low interest rate. You can refinance later.

[Reality]

[quote=SD Realtor]We may get some traction on the bear side. Rates are moving up quick. Prices tend to not react in lock step though but that indeed may knock some of the wind out of this rally. Of course if you are a buyer this hurts unless you are in cash. [/quote]

How will it hurt the buyers without cash? I know, higher interest rates, but like you write it helps with the “traction on the bear side”, meaning lower principle. There’s only so much buying power in the market and with the economy that’s only getting worse.

I’d rather get the low price than the low interest rate. You can refinance later.

[Reality]

[quote=SD Realtor]We may get some traction on the bear side. Rates are moving up quick. Prices tend to not react in lock step though but that indeed may knock some of the wind out of this rally. Of course if you are a buyer this hurts unless you are in cash. [/quote]

How will it hurt the buyers without cash? I know, higher interest rates, but like you write it helps with the “traction on the bear side”, meaning lower principle. There’s only so much buying power in the market and with the economy that’s only getting worse.

I’d rather get the low price than the low interest rate. You can refinance later.

[Reality]

[quote=SD Realtor]We may get some traction on the bear side. Rates are moving up quick. Prices tend to not react in lock step though but that indeed may knock some of the wind out of this rally. Of course if you are a buyer this hurts unless you are in cash. [/quote]

How will it hurt the buyers without cash? I know, higher interest rates, but like you write it helps with the “traction on the bear side”, meaning lower principle. There’s only so much buying power in the market and with the economy that’s only getting worse.

I’d rather get the low price than the low interest rate. You can refinance later.

[Author]

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