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 : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (5723)	2/25/2002 10:34:07 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

Well.. the rates are generally locked in, so I don't see much need for the % to dramatically climbed. I just assume they buy less expensive houses and cars during periods of high interest rates, and buy more expensive homes and cars when rates are low. But overall, the percentage of disposable income used for mortgages and transportation remains relative constant since most families have a budget based upon what they can afford and still be able to afford to feed the kids and keep them in school clothes. Hawk

To: Steve Lee who wrote (5723)	2/26/2002 5:27:05 AM
From: Moominoid	Respond to of 33421

Looks like the banks get squashed rather than the consumers then? In Australia fixed rates are only for limited periods. House prices are still rising - seems illogical to me why people take on big loans because interest rates are temporarily low and buy temporarily expensive houses (a temporary government grant is also driving house prices higher - people who couldn't afford the deposit are using the government first home buyers grant for that). In the US there is a bit more logic to what is going on though they can still egt stuck with negative equity in the future even if the debt service isn't any higher.