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Strategies & Market Trends : Waiting for the big Kahuna

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To: paulmcg0 who wrote (17302)4/26/1998 4:22:00 PM
From: yard_man  Read Replies (1) of 94695
 
If stocks get deflated, so will the housing prices to some extent. Don't worry about inflation. Rates may go up for a little while. If financial assets deflate significantly, so will housing prices, because buying will taper -- if rates are high and the real estate market is no longer great (a seller's market) you won't have any trouble finding a mortgage to assume. Remember, a lot of folks who have refinanced have taken full advantage by spending the difference.

Common wisdom is there is no better time to buy a house than when interest rates are at lows, but the other side of the coin is prices are high locally (in time) because credit is easy to obtain which has stimulated demand.
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