Home › Forums › Financial Markets/Economics › Trouble at the Treasury Auction
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CA renter.
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May 8, 2009 at 9:23 PM #395735May 9, 2009 at 10:14 AM #396232
AK
ParticipantMore panic-buying.
“Rates are going up — you MUST buy now!!!”
May 9, 2009 at 10:14 AM #395562ParticipantMore panic-buying.
“Rates are going up — you MUST buy now!!!”
May 9, 2009 at 10:14 AM #395815ParticipantMore panic-buying.
“Rates are going up — you MUST buy now!!!”
May 9, 2009 at 10:14 AM #396088ParticipantMore panic-buying.
“Rates are going up — you MUST buy now!!!”
May 9, 2009 at 10:14 AM #396035ParticipantMore panic-buying.
“Rates are going up — you MUST buy now!!!”
May 9, 2009 at 11:44 AM #396065davelj
Participant[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]
If you go back and look at the data from the late-70s and early-80s when inflation was really raging… housing prices went way up… despite the fact that interest rates went way up as well. Rents were going up at the same time.
Don’t get me wrong, I think it’s important to have sub-6% mortgage rates for the next 12-18 months as we clear out most of the foreclosure detritus, but I don’t think higher rates are going to have much impact on prices 2+ years out. May keep them from going up, but I think prices will be largely stabilized by then. And while some may say that buying now in anticipation of higher rates later is a “buying panic,” it’ll sure clear out a lot of inventory. Rightly or wrongly, anyone with a long-term view is more “payment sensitive” than “principal-balance sensitive.”
May 9, 2009 at 11:44 AM #396118Participant[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]
If you go back and look at the data from the late-70s and early-80s when inflation was really raging… housing prices went way up… despite the fact that interest rates went way up as well. Rents were going up at the same time.
Don’t get me wrong, I think it’s important to have sub-6% mortgage rates for the next 12-18 months as we clear out most of the foreclosure detritus, but I don’t think higher rates are going to have much impact on prices 2+ years out. May keep them from going up, but I think prices will be largely stabilized by then. And while some may say that buying now in anticipation of higher rates later is a “buying panic,” it’ll sure clear out a lot of inventory. Rightly or wrongly, anyone with a long-term view is more “payment sensitive” than “principal-balance sensitive.”
May 9, 2009 at 11:44 AM #395592Participant[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]
If you go back and look at the data from the late-70s and early-80s when inflation was really raging… housing prices went way up… despite the fact that interest rates went way up as well. Rents were going up at the same time.
Don’t get me wrong, I think it’s important to have sub-6% mortgage rates for the next 12-18 months as we clear out most of the foreclosure detritus, but I don’t think higher rates are going to have much impact on prices 2+ years out. May keep them from going up, but I think prices will be largely stabilized by then. And while some may say that buying now in anticipation of higher rates later is a “buying panic,” it’ll sure clear out a lot of inventory. Rightly or wrongly, anyone with a long-term view is more “payment sensitive” than “principal-balance sensitive.”
May 9, 2009 at 11:44 AM #396261Participant[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]
If you go back and look at the data from the late-70s and early-80s when inflation was really raging… housing prices went way up… despite the fact that interest rates went way up as well. Rents were going up at the same time.
Don’t get me wrong, I think it’s important to have sub-6% mortgage rates for the next 12-18 months as we clear out most of the foreclosure detritus, but I don’t think higher rates are going to have much impact on prices 2+ years out. May keep them from going up, but I think prices will be largely stabilized by then. And while some may say that buying now in anticipation of higher rates later is a “buying panic,” it’ll sure clear out a lot of inventory. Rightly or wrongly, anyone with a long-term view is more “payment sensitive” than “principal-balance sensitive.”
May 9, 2009 at 11:44 AM #395845Participant[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]
If you go back and look at the data from the late-70s and early-80s when inflation was really raging… housing prices went way up… despite the fact that interest rates went way up as well. Rents were going up at the same time.
Don’t get me wrong, I think it’s important to have sub-6% mortgage rates for the next 12-18 months as we clear out most of the foreclosure detritus, but I don’t think higher rates are going to have much impact on prices 2+ years out. May keep them from going up, but I think prices will be largely stabilized by then. And while some may say that buying now in anticipation of higher rates later is a “buying panic,” it’ll sure clear out a lot of inventory. Rightly or wrongly, anyone with a long-term view is more “payment sensitive” than “principal-balance sensitive.”
May 9, 2009 at 12:06 PM #395612afx114
ParticipantCouldn’t this be a function of the stock market’s increase since mid-March?
Stocks up = bonds down
Stocks down = bonds upMay 9, 2009 at 12:06 PM #396281ParticipantCouldn’t this be a function of the stock market’s increase since mid-March?
Stocks up = bonds down
Stocks down = bonds upMay 9, 2009 at 12:06 PM #396138ParticipantCouldn’t this be a function of the stock market’s increase since mid-March?
Stocks up = bonds down
Stocks down = bonds upMay 9, 2009 at 12:06 PM #396084ParticipantCouldn’t this be a function of the stock market’s increase since mid-March?
Stocks up = bonds down
Stocks down = bonds up -
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