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

To: Haim R. Branisteanu who wrote (73558)	4/26/2011 2:36:19 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 217860

re RE: Higher interest rates will cause RE prices to decline further. Even if you lock in a 30Y fixed-rate mortgage, it won't stop the value of the property from declining. Best case, RE prices have bottomed, and will go up slowly (very slowly) from here. Worst case, we get another sharp decline in RE (caused by higher interest rates, a recession, or some other shocking event). When any indicator goes wildly outside its LT range, it usually doesn't just correct to rational levels. It usually overcorrects, and often overcorrects in the other direction to the same degree. Risk/reward balance doesn't look good to me, for RE.