[Fearful]

I want to do services for Desmond. Any boss who is worried about appearing cheap is a good boss to have!

With any kind of service people, hire two of them, alternating service dates (e.g. each every other week). After six months, fire the one you like less and hire another to take his place. Repeat the above process after six months.

[Fearful]

I want to do services for Desmond. Any boss who is worried about appearing cheap is a good boss to have!

With any kind of service people, hire two of them, alternating service dates (e.g. each every other week). After six months, fire the one you like less and hire another to take his place. Repeat the above process after six months.

[Fearful]

I want to do services for Desmond. Any boss who is worried about appearing cheap is a good boss to have!

With any kind of service people, hire two of them, alternating service dates (e.g. each every other week). After six months, fire the one you like less and hire another to take his place. Repeat the above process after six months.

[Fearful]

[quote=deadzone]It may be true that high interest rates have not historically led to housing downturns. However, the current situation is unlike any in history. Due to the number of I/O ARM loans outstanding (reset chart), as we’ve discussed ad-nauseum, higher interest rates right now would abolutely DESTROY the housing market.[/quote]

ARMs are typically pegged to either prime rate or LIBOR. Both are short term lending rates.

Of the non mortgage interest rates, the one mortgages are most closely tied to is the ten year treasury rate. That correlation is not very strong, however. One reason they are as strongly correlated as they are is a substantial portion of the mortgages enjoy an implicit government guarantee.

Mortgage rates are only weakly correlated with housing prices. Part of this is because there is not one mortgage rate, but a range of rates corresponding to a range of creditworthiness among borrowers, among other factors. Distortions among different rates (such as subprime) were a driving force behind the housing bubble.

The distortions have been largely eliminated.

LIBOR and prime will stay low for a while, one to two years at least, as long as the recovery remains tepid.

With increased inflation expectations, or decline in Treasury creditworthiness, benchmark mortgage rates will rise rapidly. When these arrive, and how strong they will be, is anybody’s guess.

[Fearful]

[quote=deadzone]It may be true that high interest rates have not historically led to housing downturns. However, the current situation is unlike any in history. Due to the number of I/O ARM loans outstanding (reset chart), as we’ve discussed ad-nauseum, higher interest rates right now would abolutely DESTROY the housing market.[/quote]

ARMs are typically pegged to either prime rate or LIBOR. Both are short term lending rates.

Of the non mortgage interest rates, the one mortgages are most closely tied to is the ten year treasury rate. That correlation is not very strong, however. One reason they are as strongly correlated as they are is a substantial portion of the mortgages enjoy an implicit government guarantee.

Mortgage rates are only weakly correlated with housing prices. Part of this is because there is not one mortgage rate, but a range of rates corresponding to a range of creditworthiness among borrowers, among other factors. Distortions among different rates (such as subprime) were a driving force behind the housing bubble.

The distortions have been largely eliminated.

LIBOR and prime will stay low for a while, one to two years at least, as long as the recovery remains tepid.

With increased inflation expectations, or decline in Treasury creditworthiness, benchmark mortgage rates will rise rapidly. When these arrive, and how strong they will be, is anybody’s guess.

[Fearful]

[quote=deadzone]It may be true that high interest rates have not historically led to housing downturns. However, the current situation is unlike any in history. Due to the number of I/O ARM loans outstanding (reset chart), as we’ve discussed ad-nauseum, higher interest rates right now would abolutely DESTROY the housing market.[/quote]

ARMs are typically pegged to either prime rate or LIBOR. Both are short term lending rates.

Of the non mortgage interest rates, the one mortgages are most closely tied to is the ten year treasury rate. That correlation is not very strong, however. One reason they are as strongly correlated as they are is a substantial portion of the mortgages enjoy an implicit government guarantee.

Mortgage rates are only weakly correlated with housing prices. Part of this is because there is not one mortgage rate, but a range of rates corresponding to a range of creditworthiness among borrowers, among other factors. Distortions among different rates (such as subprime) were a driving force behind the housing bubble.

The distortions have been largely eliminated.

LIBOR and prime will stay low for a while, one to two years at least, as long as the recovery remains tepid.

With increased inflation expectations, or decline in Treasury creditworthiness, benchmark mortgage rates will rise rapidly. When these arrive, and how strong they will be, is anybody’s guess.

[Fearful]

[quote=deadzone]It may be true that high interest rates have not historically led to housing downturns. However, the current situation is unlike any in history. Due to the number of I/O ARM loans outstanding (reset chart), as we’ve discussed ad-nauseum, higher interest rates right now would abolutely DESTROY the housing market.[/quote]

ARMs are typically pegged to either prime rate or LIBOR. Both are short term lending rates.

Of the non mortgage interest rates, the one mortgages are most closely tied to is the ten year treasury rate. That correlation is not very strong, however. One reason they are as strongly correlated as they are is a substantial portion of the mortgages enjoy an implicit government guarantee.

Mortgage rates are only weakly correlated with housing prices. Part of this is because there is not one mortgage rate, but a range of rates corresponding to a range of creditworthiness among borrowers, among other factors. Distortions among different rates (such as subprime) were a driving force behind the housing bubble.

The distortions have been largely eliminated.

LIBOR and prime will stay low for a while, one to two years at least, as long as the recovery remains tepid.

With increased inflation expectations, or decline in Treasury creditworthiness, benchmark mortgage rates will rise rapidly. When these arrive, and how strong they will be, is anybody’s guess.

[Fearful]

[quote=deadzone]It may be true that high interest rates have not historically led to housing downturns. However, the current situation is unlike any in history. Due to the number of I/O ARM loans outstanding (reset chart), as we’ve discussed ad-nauseum, higher interest rates right now would abolutely DESTROY the housing market.[/quote]

ARMs are typically pegged to either prime rate or LIBOR. Both are short term lending rates.

Of the non mortgage interest rates, the one mortgages are most closely tied to is the ten year treasury rate. That correlation is not very strong, however. One reason they are as strongly correlated as they are is a substantial portion of the mortgages enjoy an implicit government guarantee.

Mortgage rates are only weakly correlated with housing prices. Part of this is because there is not one mortgage rate, but a range of rates corresponding to a range of creditworthiness among borrowers, among other factors. Distortions among different rates (such as subprime) were a driving force behind the housing bubble.

The distortions have been largely eliminated.

LIBOR and prime will stay low for a while, one to two years at least, as long as the recovery remains tepid.

With increased inflation expectations, or decline in Treasury creditworthiness, benchmark mortgage rates will rise rapidly. When these arrive, and how strong they will be, is anybody’s guess.

[Fearful]

I like carpet. Impossible to truly clean, and dramatically shows wear. It looks and feels great for a couple of weeks or so, but then it ages like a fine wine, carrying the cumulative story of every spill, splash, and stain. My all time favorite carpeted area is the bathroom, especially around the toilet, when it is right next to the shower or bath. Second best is the kitchen, third is the dining room. Yummy!

[Fearful]

I like carpet. Impossible to truly clean, and dramatically shows wear. It looks and feels great for a couple of weeks or so, but then it ages like a fine wine, carrying the cumulative story of every spill, splash, and stain. My all time favorite carpeted area is the bathroom, especially around the toilet, when it is right next to the shower or bath. Second best is the kitchen, third is the dining room. Yummy!

[Fearful]

I like carpet. Impossible to truly clean, and dramatically shows wear. It looks and feels great for a couple of weeks or so, but then it ages like a fine wine, carrying the cumulative story of every spill, splash, and stain. My all time favorite carpeted area is the bathroom, especially around the toilet, when it is right next to the shower or bath. Second best is the kitchen, third is the dining room. Yummy!

[Fearful]

I like carpet. Impossible to truly clean, and dramatically shows wear. It looks and feels great for a couple of weeks or so, but then it ages like a fine wine, carrying the cumulative story of every spill, splash, and stain. My all time favorite carpeted area is the bathroom, especially around the toilet, when it is right next to the shower or bath. Second best is the kitchen, third is the dining room. Yummy!

[Fearful]

I like carpet. Impossible to truly clean, and dramatically shows wear. It looks and feels great for a couple of weeks or so, but then it ages like a fine wine, carrying the cumulative story of every spill, splash, and stain. My all time favorite carpeted area is the bathroom, especially around the toilet, when it is right next to the shower or bath. Second best is the kitchen, third is the dining room. Yummy!

[Fearful]

[quote=SD Realtor]Lastly, guys like Roubini and Bill Gross say QE2 is doomed to fail and a bad idea. Brian from San Diego is okay with it though… I will go with guys like Roubini.[/quote]
I really do not understand the argument that QEn stimulates the economy. I understand it to be expansion of the money supply, pure and simple, to offset reduced money velocity from low economic activity, including high unemployment. It seems obvious to me that there will be no political will to raise interest rates and unwind QEn even when the dollar declines and inflation increases. I pity the risk averse saver, mostly the baby boomers, seeking to live off of nest egg interest. Negative real interest rates … commodity price inflation … the Krugman school saying, well, there is no wage inflation, so there must not be price inflation, therefore expansionary monetary policies must remain in place … sigh.

[Fearful]

[quote=SD Realtor]Lastly, guys like Roubini and Bill Gross say QE2 is doomed to fail and a bad idea. Brian from San Diego is okay with it though… I will go with guys like Roubini.[/quote]
I really do not understand the argument that QEn stimulates the economy. I understand it to be expansion of the money supply, pure and simple, to offset reduced money velocity from low economic activity, including high unemployment. It seems obvious to me that there will be no political will to raise interest rates and unwind QEn even when the dollar declines and inflation increases. I pity the risk averse saver, mostly the baby boomers, seeking to live off of nest egg interest. Negative real interest rates … commodity price inflation … the Krugman school saying, well, there is no wage inflation, so there must not be price inflation, therefore expansionary monetary policies must remain in place … sigh.

[Author]

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