Feds raise US interest rates again

[bdog527]

I love that I have a 4% rate on my mortgage. OMG am I glad I bought my house when I did.

Is that fixed or an ARM?

 

[jnevin]

Sure they don't.

But when more people put their houses on the market looking to "cash out" and fewer people can afford them due to higher rates....well, you see where this is going.

0% down, neg am 1st mortgage, int only second, stated income. Keeping up with the Jones' fucks people up.

 

[jnevin]

Is that fixed or an ARM?

It would be an ARM unless it's a VA loan.

 

[SoreArms]

don't the (smart) people that do this as a source of income buy a few properties when demand is low, hold on to them and sell when prices are up (like right now)?

 

[gonelifting]

It would be an ARM unless it's a VA loan.

Not neccessarily. My bros got high 4's on a 15 year loan with ZERO points. I'm assuming they did'nt time the bottom perfectly AND some points would have decreased it a bit more. Not saying to 4 even, but close. Good time. I got my 30 year with zero points for 5.25. Should have payed the points, as I'm staying here a while. ehh. It's all good.

 

[bdog527]

It would be an ARM unless it's a VA loan.

I'm sure it is an ARM as well in which case she shouldn't be so bubbly about the deal unless she plans on not living there for too long.

However I have seen fixed loans that in the 4's so it's not impossible.

I'm fixed for 30 at 5.25 and very content with it.

 

[Tadow]

don't the (smart) people that do this as a source of income buy a few properties when demand is low, hold on to them and sell when prices are up (like right now)?

That's the general idea. But the problem is that market price already reflects future expectations (which is why internet companies that had never posted a cent of profit were trading at sky-high share prices before the tech bubble burst). The real money comes from outguessing the market - and who is to say when the bubble is going to pop?

If you invest in the stock market, you aren't going to make any money by saying "I think Microsoft is going to make some money this year." Everyone already knows they are going to make money. Microsoft even employs people just to tell you how much they think they are going to make ahead of time. You make money in the stock market by outguessing the analysts - by betting that Microsoft is going to BEAT those expectations (or you make money by having inside info - an PM me if you do!).

If you are smart enough to consistantly outguess the market... you are a very very rich person.

 

[jnevin]

Not neccessarily. My bros got high 4's on a 15 year loan with ZERO points. I'm assuming they did'nt time the bottom perfectly AND some points would have decreased it a bit more. Not saying to 4 even, but close. Good time. I got my 30 year with zero points for 5.25. Should have payed the points, as I'm staying here a while. ehh. It's all good.

You're right. I was assuming she was on a 30 year loan. There was a week or so a year ago where 4.875 with a half point was doable on a 30 yr. fixed conforming loan.

 

[GoldenDelicious]

the US isnt the only place where a housing bubble has occurred. its underway here in australia also, though i think that we topped out two quarters ago. everyone was expecting a massive drop in prices at the end of the bubble, but it isnt happening; rather youre just getting a plataeu of dollar prices that is expected to remain for the next few years (meaning that in real terms, real value drops as inflation eats away the value of your fixed dollar value home) though you see significant drops in high end real estate.

i think the situation sucks. the days of buying a home when youre young, paying it off in 10-14 years and having it there as a nest egg are GONE. these days you buy it to control it, but monetarily, you may as well almost rent

 

[Razorguns]

High inflation is great for borrowers, sucks for lenders. So lenders will probably appreciate anti-inflationary measures.

I also do not expect a massive drop in prices. But i do believe it has and will hit a ceiling soon.

On the flipside -- more investors will now start looking at OTHER areas of RE (ie: development) for profit potentials.