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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (23072)	9/25/2007 8:46:04 PM
From: Metacomet	Read Replies (1) \| Respond to of 217918

"Long-term fixed mortgage rates are still fairly low, so the deals are beginning to look attractive to people with good credit who can make a 20% down payment." Maybe so... But reality is that debt service is approximately $1000/$100,000, PITI Since this is linear, we will see where Joe6pack hits the wall with conventional mortgage payments. My hunch is there aren't that many folks who can afford the $2500. per month required for "entry level" housing. And there aren't that many houses out there that are under a quarter million dollars....at least at the asking price. Finding the affordability intercept will not occur before most of the major builders are BK, for building unaffordable houses in the first place, and a whole lot of folks are swallowed in the debt hole they created by multiple re-fi's to keep up with the Joneses.