Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (930)	10/24/2001 12:01:00 PM
From: J. P.	Read Replies (1) \| Respond to of 306849

IMO you'd be jumping the gun. You may get a lower rate now, but you'd still be paying near maximum asking prices. I don't think there's any need to rush to get in. Obviously, the Fed has been ULTRA aggressive in lowering rates. The rates may wiggle fractionally lower short term, but the IMO the next larger cyclical rate move is going to be up. finance.yahoo.com It's when the rates tick up that you'll see the true cyclical downturn in real estate. And I don't think there will be any rush to get in when comparing today's prices, the rates will tick back up over a period of time. Sure, people will always need to buy homes. But you're not going to get this price gouging that has been prevalant in times of a hot stock market and full employment in the economy. Prices that are still too high because sellers are not near the realization that they can't hold on to 3 year 100% gains. Sellers are still trying to realize huge short term capital gains against buyers and don't seem willing to back down -- yet. Now we can debate that an upturn in rates plus a downturn in price is a wash when compared to low rates and high prices, but I've always questioned the wisdom in carrying a 30 year mortgage to full term paying the minimum service anyways...I'd rather get the lower price at a higher rate and pay the mortgage off in say 10 years reducing all the upfront interest that you pay on a 30 year mortgage and paying down the principal in the first years.