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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: bozwood who wrote (4678)8/26/2002 2:33:12 PM
From: TradeliteRead Replies (2) of 306849
 
Boz, I think you just made the point you seem to expect me to make.

If the payments on the two vastly different prices and hugely different interest rates are about the same, why is everyone so worried about where real estate prices and mortgage interest rates are going, and why would anyone try to *hedge* the two?

One or the other--prices or interest rates--can shoot up or down on very short notice. Been there. Seen that. (Although I doubt we will see the extremes of 6 percent vs. 9 percent you used in your scenario anytime soon.)

After buying a home, it would seem best to me to just live in it and enjoy it and forget the movements of the real estate market.

Looks like there are many late 1990's bull-market-stock traders trying to outguess the real estate market because they think the same principles apply to both.
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