Hi Bill,
Here is something worth watching as rates increase: the housing bubble.
SF Chronicle: Will Housing Bubble Burst? Amid the frenzy, however, some alarming trends have emerged. For example, there has been an increase in the number of Bay Area homes that fail to appraise for the purchase price, according to Ed Krafchow, president of Prudential Realty of California, Nevada and Texas. In such cases, a lender often walks away from the deal or asks the buyer to pony up more purchase money. "There's a lack of rationality in the market," Krafchow said.
This story, which is running across the top of Page One in today's Chronicle, is an important cautionary note. I hope people are paying attention, finally, because the mania in home-buying is a clear and present danger to our economy.
sfgate.com
Skeet |
