The Fed and Treasury have both said that they key to recovery is keeping home prices high. (They call that a “recovery” in the housing market.) And the Fed has said it will buy more assets if it needs to in order to meet its goals. Put those facts together and my conclusion is that the interest rates will not be allowed to rise very much – maybe 100bp.
Is this what you were getting at – the impact on interest rates, and therefore home prices, that we should expect?[/quote]
Yes and No. Higher Interest rates would lower prices but the TRUTH of Govt regulations, intervention and intention seems to me to be such an unknown.
I agree with most here that there are no more “norms” to be used in determining future results.
Looking at past history is all but irrelevant, OR not?
I am just as sick of Govt intervention as some here, yet for me…govt intervention helps me. But from a principled perspective…I don’t like this new way of manipulating the Housing Market. I wish it didn’t exist even if it hurt my chances of ownership.
But predicting the future is best done, as was said here, in short term.
My personal approach to house hunting is a conundrum of ideas where I tend to agree with those in the High End of the market yet reality puts me at the lower end, thus limiting my options and forcing me to take “uncomfortable” steps.
