Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Actually, this is beyond cliff notes. It is gibberish. Real estate agent.

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

You understand that the rate is dependent on many factors, not just the mortgage market, right?

I'm not in the mood for finance 101 cliff notes.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Who is "they?" Rates are set in the long run by the market, not Bernanke, if he is your "they."

They is the federal reserve, we are already being hit with the obamcare and higher taxes, the reserve will wait until way after those affects before messing with housing

I think you're missing the point. It is beyond the Fed's control, over time. They are buying debt with money they (we) don't have to bid down interest rates. It is not sustainable and will not be sustained. Know one has a crystal ball, but don't count on the bond market tanking at a convenient time. When it does, up go rates and down go $800,000 houses.

Inflation + low interest rates + low inventory + best jobs = sucks to be on the sidelines

You must be a real estate agent. "Real estate never goes down," ha ha ha.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Who is "they?" Rates are set in the long run by the market, not Bernanke, if he is your "they."

They is the federal reserve, we are already being hit with the obamcare and higher taxes, the reserve will wait until way after those affects before messing with housing

I think you're missing the point. It is beyond the Fed's control, over time. They are buying debt with money they (we) don't have to bid down interest rates. It is not sustainable and will not be sustained. Know one has a crystal ball, but don't count on the bond market tanking at a convenient time. When it does, up go rates and down go $800,000 houses.

Inflation + low interest rates + low inventory + best jobs = sucks to be on the sidelines

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Who is "they?" Rates are set in the long run by the market, not Bernanke, if he is your "they."

They is the federal reserve, we are already being hit with the obamcare and higher taxes, the reserve will wait until way after those affects before messing with housing

I think you're missing the point. It is beyond the Fed's control, over time. They are buying debt with money they (we) don't have to bid down interest rates. It is not sustainable and will not be sustained. Know one has a crystal ball, but don't count on the bond market tanking at a convenient time. When it does, up go rates and down go $800,000 houses.

Anonymous wrote:

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Who is "they?" Rates are set in the long run by the market, not Bernanke, if he is your "they."

They is the federal reserve, we are already being hit with the obamcare and higher taxes, the reserve will wait until way after those affects before messing with housing

Anonymous wrote:They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Who is "they?" Rates are set in the long run by the market, not Bernanke, if he is your "they."

They will not move rates up high until the average price exceeds the bubble high with enough cushion to sustain the price.

Anonymous wrote:I think my parents bought at 15% in the 80s. OTOH, I remember when we first bought in 2003 and people were saying that 6ish% was bargain basement rates. Who knew? We now are sitting at 3.5% on a 30 year loan on our second property. I'm not too worried.

My first mortgage was a 15-year at 7.9 percent. The median rate is 8.9 percent since inception of the 30-year, I think. The problem is that when rates snap back, payments will skyrocket out of reach at current price levels for most buyers. Look out below....

Anonymous wrote:

Anonymous wrote:$345K in 2006. Probably worth $260K now.

Ouch! Sorry to hear that, pp.

Yep, it hurts. We intended to sell after 5 years. Almost 7 years in +2 kids and we have long outgrown it but feel completely stuck.

I think my parents bought at 15% in the 80s. OTOH, I remember when we first bought in 2003 and people were saying that 6ish% was bargain basement rates. Who knew? We now are sitting at 3.5% on a 30 year loan on our second property. I'm not too worried.

Paid $419 in March of this year, Zillow says $511k. Woo Hoo!

Anonymous wrote:

Anonymous wrote:Some of the price increases on here do not sound sustainable... if you bought a house last year and it's already worth 100k more, how much longer is that supposed to go on? Is the house supposed to gain a million in value in 10 years? How are people just starting out going to be able to afford homes? I dunno, it just doesn't seem right to me.

I'm probably the only one in the room who remember 15%-plus mortgage interest. When the pendulum swings back in that direction (and it will) there is going to be a world of hurt in the DC market.

I remember when my husband's employer gave us a 9% rate which seemed incredibly low compared to the 11% and higher rates we were seeing in the region.

"Some of the price increases on here do not sound sustainable... if you bought a house last year and it's already worth 100k more, how much longer is that supposed to go on? Is the house supposed to gain a million in value in 10 years? How are people just starting out going to be able to afford homes? I dunno, it just doesn't seem right to me."

Well, appraised "value" is not very correlated with actual value, aka resale price. My home has been apprised twice in the last 18 months - first appraisal was $190K over purchase price, though we only put about 40K into it. Second appraisal was $45K over purchase price, an amount I think would be achievable if we put it on the market today.

Anonymous wrote:Some of the price increases on here do not sound sustainable... if you bought a house last year and it's already worth 100k more, how much longer is that supposed to go on? Is the house supposed to gain a million in value in 10 years? How are people just starting out going to be able to afford homes? I dunno, it just doesn't seem right to me.

I'm probably the only one in the room who remember 15%-plus mortgage interest. When the pendulum swings back in that direction (and it will) there is going to be a world of hurt in the DC market.