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

To: nextrade! who wrote (16469)1/30/2004 9:34:21 PM
From: JF QuinnellyRespond to of 306849
 
What happens to home prices when interest rates rise?

Haven't you heard? Home prices always go up. Or something.



To: nextrade! who wrote (16469)1/30/2004 9:35:39 PM
From: JBTFDRead Replies (2) | Respond to of 306849
 
Just looking at the straight math of it:

If a couple can afford $1440 a month for mortgage payment (P & I), that equals a loan amount of $253,615 if the interest rate is 5.5%. If the rate goes to 7 the same mortgage payment would only equal a loan amount of $216,443.


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