rates moving up fast

[Coronita]

[quote=ibjames]I carry no balances, and my wife and I use one card sparingly to make sure we keep it, I had Citi give me a use it or lose it warning a while ago, I didn’t believe they would actually cancel me..

they did! Bastards!

Eh… less junk in my wallet[/quote]

That might be why..CC might have classified you as a deadbeat of deadbeats 🙂 If you just have a credit card and don’t use it, it’s probably much more of an expense for them since they’re not making money on you either by the usury interest rates nor merchant charges.

I guess the more appropriate question is what are people’s annual charges on their CC for which they are getting cancelled. I rack up close to $20k in expenses each year minimum, just because I put everything on the card, including all business expenses I incur. I just seek my company to reimburse me (gotta get that rebate check).

[SDEngineer]

[quote=sobmaz]I keep hearing that line.

Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.

Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.

It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.

Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]

Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:

Shambling Towards Affordability (December 2008 Edition)

and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.

BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.

[SDEngineer]

[quote=sobmaz]I keep hearing that line.

Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.

Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.

It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.

Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]

Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:

Shambling Towards Affordability (December 2008 Edition)

and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.

BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.

[SDEngineer]

[quote=sobmaz]I keep hearing that line.

Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.

Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.

It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.

Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]

Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:

Shambling Towards Affordability (December 2008 Edition)

and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.

BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.

[SDEngineer]

[quote=sobmaz]I keep hearing that line.

Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.

Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.

It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.

Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]

Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:

Shambling Towards Affordability (December 2008 Edition)

and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.

BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.

[SDEngineer]

[quote=sobmaz]I keep hearing that line.

Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.

Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.

It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.

Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]

Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:

Shambling Towards Affordability (December 2008 Edition)

and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.

BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.

[patientrenter]

[quote=SDEngineer] ….BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]

SDE, I’d say that median price / median household income is a better measure of affordability over long periods. It makes no sense to compare the per capita ratio in the 1950’s when almost all households had only one income to the per capita ratio today when households have mostly two incomes. I’d be interested to see a long history of the household ratio, and the ratio in 1997 would definitely be less than 6.75, the recent low point of the SD per capita measure. Even that would be higher, I’d guess, than the ratio in the 1960’s and earlier.

[patientrenter]

[quote=SDEngineer] ….BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]

SDE, I’d say that median price / median household income is a better measure of affordability over long periods. It makes no sense to compare the per capita ratio in the 1950’s when almost all households had only one income to the per capita ratio today when households have mostly two incomes. I’d be interested to see a long history of the household ratio, and the ratio in 1997 would definitely be less than 6.75, the recent low point of the SD per capita measure. Even that would be higher, I’d guess, than the ratio in the 1960’s and earlier.

[patientrenter]

[quote=SDEngineer] ….BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]

SDE, I’d say that median price / median household income is a better measure of affordability over long periods. It makes no sense to compare the per capita ratio in the 1950’s when almost all households had only one income to the per capita ratio today when households have mostly two incomes. I’d be interested to see a long history of the household ratio, and the ratio in 1997 would definitely be less than 6.75, the recent low point of the SD per capita measure. Even that would be higher, I’d guess, than the ratio in the 1960’s and earlier.

[patientrenter]

[quote=SDEngineer] ….BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]

SDE, I’d say that median price / median household income is a better measure of affordability over long periods. It makes no sense to compare the per capita ratio in the 1950’s when almost all households had only one income to the per capita ratio today when households have mostly two incomes. I’d be interested to see a long history of the household ratio, and the ratio in 1997 would definitely be less than 6.75, the recent low point of the SD per capita measure. Even that would be higher, I’d guess, than the ratio in the 1960’s and earlier.

[patientrenter]

[quote=SDEngineer] ….BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]

SDE, I’d say that median price / median household income is a better measure of affordability over long periods. It makes no sense to compare the per capita ratio in the 1950’s when almost all households had only one income to the per capita ratio today when households have mostly two incomes. I’d be interested to see a long history of the household ratio, and the ratio in 1997 would definitely be less than 6.75, the recent low point of the SD per capita measure. Even that would be higher, I’d guess, than the ratio in the 1960’s and earlier.

[raty4R]

I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.

[raty4R]

I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.

[raty4R]

I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.

[raty4R]

I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.

[Author]

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