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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Krikor who wrote (14080)	8/6/2002 11:29:44 PM
From: russwinter	Respond to of 19219

IMO it will fit the boom and bust of other markets in the 90's where capital flows have been too loose and easy. The answer to your question is to calculate what will happen to residential real estate in hot areas, when capital gets choked off or is made available at higher cost. Just a modest example: what happens to home prices in Boston, or Seattle if (1) 30 year mortgages are 7.25% again (2) credit standards are tightened enough to eliminate the marginal buyer (say of 5%-10% of those who can qualify today) (3) home mortgage default rates increase by 2%, or 3%?