Quote:
Originally posted by SoCal911SC
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That suggests that "Housing Crash = Interest rates driven up."
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I'm no economist, but I see it the other way around. Long term rates go up = Housing Crash.
New buyers will be shut out with even a 2-3 point jump, since that makes current financing costs maybe 30-50% higher. Then people with adjustable loans will get squeezed on their payments, prices will go down because of fewer qualified buyers, people will walk away from their now high rate loans since the loans are more than their property is worth, prices go down further, etc. etc.
I think in the next 3-5 years CASH IS KING.