Quote:
Originally Posted by Arizona_928
someone calling 2008?
The bubble is going to burst as the interest rates go up. Fools will be parted with their money...
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I shouldn't be surprised (but I am) that small increases in the prime rate would dramatically affect new housing starts in Atlanta area. These folks must be really leveraged that a couple % on a mortgage is a deal killer. To me, a normal 30-year mortgage rate should be around 7-8% given the interest rate risk and default risk. Anything less is evidence of artificial invisible hand.
Also, I sort of empathize with those who bought on the high side last summer. Timing is everything but it was obvious something weird was going on and it wouldn't last.
edit: we've had 20 years of artificially low rates and deflation. New territory now as that's crashed. Anyone's guess what's in store the next few years but I don't think we've seen anything yet.