Here comes the pain baby! 5.74% 30yr mortgage rates.

peilthetraveler

peilthetraveler

Im seeing some places as high as 6.25%, but according to yahoo, 5.74% is the average. Its just going higher and higher and pushing housing prices lower and lower. I bet we hit 7% before the end of July.

Got your gold/silver stored up? here comes the inflation monster.
 
Quote from peilthetraveler:

Im seeing some places as high as 6.25%, but according to yahoo, 5.74% is the average. Its just going higher and higher and pushing housing prices lower and lower. I bet we hit 7% before the end of July.

Got your gold/silver stored up? here comes the inflation monster.
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You expect lower housing prices, but higher prices for precious metals? Lower and lower housing prices is inconsistent with an inflation thesis.
 
Higher interest rates will shut off the recovery. With an economy slowing again and interest rates rising we may see some strength in the dollar and a postponment in the inflation we are all expecting.
 
5.75%+ looks extremely high when comparing it to historical lows just last month at 4.61%, I highly doubt you will see anything under 4.75% anytime soon, the rates are going higher meaning any chance of new buyers to the market will just wait thinking they will be able to lock in under 4.75% again when in reality they wont, this will keep people from buying any of the millions of homes on the market right now. And think of how many foreclosures will be coming to the market over the next 12-18 months, that on top of high mortgage rates will continue to push housing prices a lot lower. Without the fed stepping these last 6 months the rates right now would have probably been 7% or higher.
 
Quote from Retief:

You expect lower housing prices, but higher prices for precious metals? Lower and lower housing prices is inconsistent with an inflation thesis.
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Ah you are right... I guess i was working on the assumption that if the buyers can only afford a 200k house at 5%, then they can also only afford a 70k house at 14.25%

Although to be fair, silver is up 50% and gold 20% since january and housing is down about 5% in the same time period :)
 
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