Mortgage News Daily notes Mortgage Rates Jump to 7-Year Highs.
Loan Originator Perspective
- “This is not a drill, it’s an imminent panic.” Ted Rood, Senior Originator
- “We are now locking at origination until further notice.” Al Hensling
MND perspective: “While we may see periodic corrections to the broader trend toward higher rates, it’s safer to assume that broader trend can and will continue.”
At some point, rising rates will kill housing. Everyone is guessing where that point is.
Mike “Mish” Shedlock
Mish has forecast a bear market, or very low returns over the next decade, not a crash.
As for real estate sales, rising interest rates can cut either way, depending on future expectations. If the expectation is lower interest rates ahead, sales will drop as buyers wait. If the expectation is continued increases in rates, buyers will rush to buy before they go higher.
Trying to time real estate cycles is dumber than trying to time stock market cycles. At least with the stock market you just dirt cheap broker commissions. When selling a house you pay 5-6% of the home value, and all of the costs associated with moving to your bunker you rented out to “ride out the storm”. And of course once the crash comes you’ll know exactly the right time to buy back in, and won’t get caught with your pants down.
Get real people. The housing market was operating in a different universe in 2002-2008. We not longer have meaningful ARM resets which acted as an accelerant to the downside.
Hope housing prices crash. Looking to buy an apartment near my kids college so they can live there while at school. Will sell after youngest graduates.
More than a “bit” off. But “crash” is also wrong. Others have predicted a “crash” not me.
Mortgages… isn’t that a loan on cars too?
Unaffordable housing becoming un
affordabl-er by the day. Tick, tock.