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


To: Jim McMannis who wrote (21535)6/10/2004 10:19:18 PM
From: MulhollandDriveRead Replies (1) | Respond to of 306849
 
hmm...how 'bout 11.5 %?

just a wag...

:)



To: Jim McMannis who wrote (21535)6/10/2004 11:47:44 PM
From: gpowellRead Replies (1) | Respond to of 306849
 
Assumptions

Home price appreciation is 7.7% nationwide (ofheo data); assume then that CPI inflation is 7.7% and feds target rate is 2%.
GDP growth is approximately 3.6% - let’s say that is 1% above potential.
Unemployment gap equals 0.

Fed funds rate will be approximately 9.5%
30 Year Fixed Rate Conventional Mortgage: 12.6% +/- 1.15%