Reply to Is there another "housing bubble"?

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Reply to "Is there another "housing bubble"?"

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[quote=Anonymous]Yes but different factors this time.  A decade of no interest has inflated asset values.  Fed is now realizing this and reversing with 3 more possible hikes this year and interest rates up to 6% by 2019.  Capital flight from China = lots of rich Chinese buying properties in the US to store capital.  The multifamily overbuilding will affect rents in the next few years, this will affect mom and pop landlords if they rely on rent to pay the mortgage.  Financing is much tighter this time around but remember that during the last bubble many more people defaulted on prime mortgages than subprime.  Subprime lenders declaring bankruptcy was the domino that started the crisis - but my guess is that rates potentially up to 6-8%  in the next 3 years will affect valus.  People will walk away from a very high mortgage payment if the value of the home doesnt hold up.  Higher rates will affect the economy substantially potentially causing lay offs bc of debt service at higher amts.

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