For buyers in the long run.
One secret is as rates go up prices go down as fewer people qualify for the inflated priced house. Let's not forget that banks use formulas to qualify people and the mortgage payment has to fit. And it doesn't take much of a rate increase to push the price of a house out of reach.
So, if you are a seller (especially a bank) and you have to sell your forced to lower your price if buyers are shut out by higher interest rates. Maybe you wont even be able to give it away if the rates go up as it will be so much cheaper to rent. In other words, this makes more rentals at even lower rents as owners, struggling to keep from losing their equity or credit, lease out the property. And if the seller is a bank, expect much lower auction prices as they run out of qualified buyers.
The main thing is the working stiff went broke and needs time to recover his credit and cash from the last bust. High unemployment and low savings need to be corrected. As predicted, most of the new qualified buyers available bought a house using the tax gimmick and now don't need one. Banks sat on foreclosures to lessen the hit on their books trying to stay solvent and Big Business parks their cash waiting for Washington to get their shit together and fix the tax mess.
Today Oba mama blinked and told the Dem's to suck it up and give the rich guys who owns his ass their money back. Everybody forgets that the Fed gov steals your money and has a fit if you want it back.
Of course, many of these rich fuckers got the money from TARP, but let's not be mean. Hey, in the future they'll get even more "help" creating jobs LOL.
Mortgage Rates Creep Up Again This Week
One secret is as rates go up prices go down as fewer people qualify for the inflated priced house. Let's not forget that banks use formulas to qualify people and the mortgage payment has to fit. And it doesn't take much of a rate increase to push the price of a house out of reach.
So, if you are a seller (especially a bank) and you have to sell your forced to lower your price if buyers are shut out by higher interest rates. Maybe you wont even be able to give it away if the rates go up as it will be so much cheaper to rent. In other words, this makes more rentals at even lower rents as owners, struggling to keep from losing their equity or credit, lease out the property. And if the seller is a bank, expect much lower auction prices as they run out of qualified buyers.
The main thing is the working stiff went broke and needs time to recover his credit and cash from the last bust. High unemployment and low savings need to be corrected. As predicted, most of the new qualified buyers available bought a house using the tax gimmick and now don't need one. Banks sat on foreclosures to lessen the hit on their books trying to stay solvent and Big Business parks their cash waiting for Washington to get their shit together and fix the tax mess.
Today Oba mama blinked and told the Dem's to suck it up and give the rich guys who owns his ass their money back. Everybody forgets that the Fed gov steals your money and has a fit if you want it back.
Of course, many of these rich fuckers got the money from TARP, but let's not be mean. Hey, in the future they'll get even more "help" creating jobs LOL.
Mortgage Rates Creep Up Again This Week
For the third week in a row, the rates on all types of mortgages increased, according to the latest statistics from home loan giant Freddie Mac. For the week ending December 2, the company found that 30-year fixed rate mortgages averaged 4.46 percent, up from the 4.40 percent observed last week. However, for the same week in 2009, the rate was 4.71 percent.
Similarly, rates on 15-year fixed home loans jumped to 3.81 percent in the week, up from 3.77 percent, the company said. That was still down from the 4.27 percent observed in the same period last year.
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