Reply to What is truly going on with the DC area real estate market, please explain?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates. [/quote]

4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.
[/quote]

Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.[/quote]

If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient. [/quote]

Not really, the average mortgage rates in '16,'17 and '18 were 3.7, 4 and 4.5 percent respectively. The last six months is about 2.8%. It's an enormous difference from an affordability perspective.[/quote]

Yes really. You’re indicating a mortgage rate a quarter to half a percent higher than the average rate (for 30 years might I add) in 2016/2017. That type of higher rate comes for a reason - either you added points, didn’t have a acceptable down payment or terrible credit. Buyers aren’t penalized for no reason.[/quote]

I'm not talking about myself, I'm talking about the average rate from 17/18, which was 4.25%. [/quote]

We have 800 credit scores and had a "low" rate of 4.15% in 2018 so I agree with you.[/quote]

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