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

To: Tradelite who wrote (84406)	8/10/2007 10:33:17 AM
From: Think4Yourself	Respond to of 306849

I can in general agree with your statement. It fluctuates a bit over time but in general total cost to the buyer will be the same. Someone who wants to move gets hurt by waiting in a rising interest environment. They get less as the rates go up, so it ends up costing them more in total to buy the same house. Now that I have thought this through I can see a golden rule for homeowners. NEVER wait to sell in a rising rate environment, if you do need to sell. You cannot win and will never get more "later".

To: Tradelite who wrote (84406)	8/10/2007 10:34:37 AM
From: Tommaso	Respond to of 306849

drhousingbubble.blogspot.com The slow decline is happening because there is a systematic time bomb of mortgage resets waiting in the wing. Like a jaguar stalking its prey, it is lingering in the corner ready to pounce. How much is really resetting? According to Credit Suisse, the biggest month of mortgage resets will be October 2007 where $50 billion loans will reset for the first time. In addition, we are already in the full reset mode with $30 billion in loans resetting each month from now until September 2008. You think it is bad now? The market is still thriving a bit because summer does bring out buyers and sellers that really have no idea of the credit bubble working behind the scenes. If anything, this is the absolute last leg of the housing market for a long time. See, the Ponzi game could only last for so long. With housing in major metro areas going up each year, it masked the financial naiveté of many buyers who got in trouble because they simply listed their home and actually made some money by selling in record time. Or they played the refinancing musical chair game and bought time by giving themselves a short-term carry over loan. However, this all ends when lending gets tighter and the lava like pace of the mortgage reset is creeping to you and there is nothing to do except watch.