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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Grandk who wrote (13711)5/12/2004 2:09:44 PM
From: ItsAllCyclical  Read Replies (2) of 110194
 
Whenever you have a change in trend it's usually the marginal rate of increase/decrease that determines tight markets. It's not that 7% interest rates will cause people to stop buying houses, but it'll take some buyers out of the market, home prices don't go up as fast and the whole thing feeds on itself. I think it'll take far less hikes than most people expect for the housing sector to be feeling major pain. As little as 6.5% to 7% 30 year fix rate will get it started imho.
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