Scripps Ranch…What say you…

[Scarlett]

[quote=sdrealtor]Interest rates werent 9% in 1997 when I bought my 1st home here and when they are higher folks will just opt for adjustable rates in the short term and refi when they drop. Expecting and waiting for 9% interest rates is a folly IMO and will leave you waiting to buy well past the prime years of your life. Rules of thumb like that are dangerous to get stuck on. Watch, run numbersd and take the plunge when it makes sense for you rather than waiting for some mythical number.[/quote]

Are you saying that increasing rates from current to e.g. 9% will not affect the prices that much because of the ARMs and such?

You can run now all the numbers you want but if the rates go to 9% or God forbid, double digits, I believe the housing prices will also go down significantly, (i.e. > 20%). If you have to sell for whatever reason at that point, you will be taking a bath. (to be clear, I am talking more mid-range housing), that’s what most potential buyers are afraid of. But, you have to tolerate some risk in RE, and go on with your life, so maybe you buy something less that what you could afford, or move to another state.

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[Reality]

How can you tell what prices would have been with lower interest rates? Just because prices went up doesn’t mean that high interest rates didn’t mitigate the rise.

Most people (not counting all the rich people our realtors seem to know) look for a monthly payment they can handle. More interest = less principal.

[Reality]

How can you tell what prices would have been with lower interest rates? Just because prices went up doesn’t mean that high interest rates didn’t mitigate the rise.

Most people (not counting all the rich people our realtors seem to know) look for a monthly payment they can handle. More interest = less principal.

[Reality]

How can you tell what prices would have been with lower interest rates? Just because prices went up doesn’t mean that high interest rates didn’t mitigate the rise.

Most people (not counting all the rich people our realtors seem to know) look for a monthly payment they can handle. More interest = less principal.

[Reality]

How can you tell what prices would have been with lower interest rates? Just because prices went up doesn’t mean that high interest rates didn’t mitigate the rise.

Most people (not counting all the rich people our realtors seem to know) look for a monthly payment they can handle. More interest = less principal.

[Reality]

How can you tell what prices would have been with lower interest rates? Just because prices went up doesn’t mean that high interest rates didn’t mitigate the rise.

Most people (not counting all the rich people our realtors seem to know) look for a monthly payment they can handle. More interest = less principal.

[sdrealtor]

Scarlett
9% fixed rates would have an impact I just dont beleive we will see them anytime soon. The other factor is when 30 year rates rise above a certain level (roughly 8%) buyer switch to adjustable products for purchases and skip the 30 yr fixed rates which mitigates some of the impact of higher rates.

[sdrealtor]

Scarlett
9% fixed rates would have an impact I just dont beleive we will see them anytime soon. The other factor is when 30 year rates rise above a certain level (roughly 8%) buyer switch to adjustable products for purchases and skip the 30 yr fixed rates which mitigates some of the impact of higher rates.

[sdrealtor]

Scarlett
9% fixed rates would have an impact I just dont beleive we will see them anytime soon. The other factor is when 30 year rates rise above a certain level (roughly 8%) buyer switch to adjustable products for purchases and skip the 30 yr fixed rates which mitigates some of the impact of higher rates.

[sdrealtor]

Scarlett
9% fixed rates would have an impact I just dont beleive we will see them anytime soon. The other factor is when 30 year rates rise above a certain level (roughly 8%) buyer switch to adjustable products for purchases and skip the 30 yr fixed rates which mitigates some of the impact of higher rates.

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