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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5582)	5/5/2004 6:03:51 AM
From: ChrisJP	Respond to of 116555

Don’t worry about housing price bubbles Although I believe that as soon as the 30-year fixed mortgage rise above 7%, the real estate market will come to a grinding halt nationwide (as well as the economic stimulus from refinancing, which I recent;y participated in, lol), the Washington DC metro area is most likely a special case. People keep moving here as fast or faster than they can build homes. I would say 10,000 more people, some of who have families, move here than leave every year. That provides enormous support for housing prices here. As for other parts of the country, welllll if there populations are more or less steady state, then I'd expect prices to drop substantially as rates rise. Chris