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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1265)	2/27/2001 11:46:41 AM
From: GraceZ	Read Replies (2) \| Respond to of 24758

Ordinary people buy homes with borrowed money. The thing that matters the most to them is the monthly PITI payment not the price. As mortgage rates fall, home prices rise because people are only looking at the payment. Real estate agents won't even show you a house priced below what Ginny Mae will qualify you for unless you threaten them a couple of times. When the average person can't afford the average house or rates go up or people become insecure about their job then prices soften, but as long as they can afford these increases there is no reason for them to do anything but go up. I can imagine that the market has already started to soften because people don't shop for houses when they start to worry about their jobs. It helps to have good affordable shoes when you are house hunting.