The Residential Real Estate Post-Crash Index-Moderated Message Board

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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

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To: bull_dozer who wrote (118700)	3/31/2022 1:10:43 PM
From: bull_dozer	Read Replies (1) of 119358

Time to Sell! Real estate unhinges from reality, investors pile in and the Fed sleepwalks toward the edge... Bill Bonner Recently, about a third of house purchases were being made by investors, not owner-occupiers. This buying pressure then pushed up prices and left prospective homeowners scrambling to find a place to live. Type in “Room for Rent” on Bing search and you get 20 million results. But the hinge swings both ways. The interest rate cycle seems to have run its course, with the yield on the benchmark 10-year Treasury Note hitting a record low in July 2020. Since then, the yield has swung back from 0.51% to 2.4% today. This may not sound like a lot, but the rise in yields, worldwide, has already caused bond investors to lose about $5 trillion. And now mortgage rates are spiking up. Homeowners face 5% mortgages. Our guess, for what it is worth, is that mortgage rates will continue to rise, for many years. (Interest rate cycles tend to last a very long time.) Refinancers will be unable to keep up with the monthly payments… houses will go back on the market at lower prices… and recent buyers will wish they had waited until after the bust. bonnerprivateresearch.substack.com

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