Trouble at the Treasury Auction

[EconProf]

This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.

[fishsticks]

[quote=EconProf]This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.[/quote]

Yup – it’s huge. One would expect, though, that higher interest rates would translate into lower prices. At least I hope that is the case — the market is so gamed that basic classical economics doesn’t make much sense. Any predictions how the SD housing market would respond to, say, 8% interest rates?

[fishsticks]

[quote=EconProf]This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.[/quote]

Yup – it’s huge. One would expect, though, that higher interest rates would translate into lower prices. At least I hope that is the case — the market is so gamed that basic classical economics doesn’t make much sense. Any predictions how the SD housing market would respond to, say, 8% interest rates?

[fishsticks]

[quote=EconProf]This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.[/quote]

Yup – it’s huge. One would expect, though, that higher interest rates would translate into lower prices. At least I hope that is the case — the market is so gamed that basic classical economics doesn’t make much sense. Any predictions how the SD housing market would respond to, say, 8% interest rates?

[fishsticks]

[quote=EconProf]This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.[/quote]

Yup – it’s huge. One would expect, though, that higher interest rates would translate into lower prices. At least I hope that is the case — the market is so gamed that basic classical economics doesn’t make much sense. Any predictions how the SD housing market would respond to, say, 8% interest rates?

[fishsticks]

[quote=EconProf]This is a huge move in one day for long-term interest rates.
In essence, long-term rates reflect anticipated inflation by the investment community. This will be a big blow to home-seekers, as mortgage rates will react. Recently, the only good news home-buyers have going for them are the historically low mortgage rates. That now looks about to change.[/quote]

Yup – it’s huge. One would expect, though, that higher interest rates would translate into lower prices. At least I hope that is the case — the market is so gamed that basic classical economics doesn’t make much sense. Any predictions how the SD housing market would respond to, say, 8% interest rates?

[patientrenter]

[quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.

[patientrenter]

[quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.

[patientrenter]

[quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.

[patientrenter]

[quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.

[patientrenter]

[quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.

[5yearwaiter]

[quote=patientrenter][quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.[/quote]

Absolutely the housing prices decline fast if interest rates move even 6% further at this trend, It is simple math how do you invest for 600K property with that interest payment and there is no future gurantee for that money you can get back at the end !!

[5yearwaiter]

[quote=patientrenter][quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.[/quote]

Absolutely the housing prices decline fast if interest rates move even 6% further at this trend, It is simple math how do you invest for 600K property with that interest payment and there is no future gurantee for that money you can get back at the end !!

[5yearwaiter]

[quote=patientrenter][quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.[/quote]

Absolutely the housing prices decline fast if interest rates move even 6% further at this trend, It is simple math how do you invest for 600K property with that interest payment and there is no future gurantee for that money you can get back at the end !!

[5yearwaiter]

[quote=patientrenter][quote=fishsticks]….Any predictions how the SD housing market would respond to, say, 8% interest rates?[/quote]

That’s easy:

1. Houses would become a lot cheaper for savers (a very small group)

2. Houses would become slightly more expensive for borrowers (the majority of buyers)

C’mon, now gimme a hard question.

Oh, and before mortgage interest rates got close to 8%, the voters in San Diego would let their Congressman know that they didn’t want interest rates to be high, and, hey presto! they would be lowered again. It’s good to control the Federal Reserve.[/quote]

Absolutely the housing prices decline fast if interest rates move even 6% further at this trend, It is simple math how do you invest for 600K property with that interest payment and there is no future gurantee for that money you can get back at the end !!

[Author]

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