Quote:
Originally Posted by RalliartRsX
Your first statement is somewhat contradictory. The Feds would not increase interest rates if they had any inkling it would stop growth (read: the uncertainty aspect you mentioned).......they have raised it twice this year already and there are talks of a 3rd. Now is the best time of any to buy before they raise it a 3rd time.....
In addition, after the 08 crash, there has been a significant amount of checks and balances put in place to prevent the same from happening again (although, I still do think those asshole bankers should have been all tossed to the dogs as the same ones are involved in a lot of recent unscrupulous practices, but I digress as they were not the only ones to blame....but anyways).
Also, it all depends on which market you are in. In DC for instance, with the biggest employer being the government, the markets never really took a hit as no one lost their jobs so could still afford their mortgages.
Although I do agree, unless you have $$$ burning a whole in your pocket, a massive downpayment for regular working class folks is not a good recommendation. However, I whole heartedly disagree with the remaining balance of your post (and because I thought the same before we bought our first home).
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Your first comment is contradictory lol. The feds wont raise interest rates if they knew it would be detrimental to the economy, but they have and will most likely continue to increase the rates. While low interest rates can and has kept the economy sonewhat above water, there are long term repercussions and the feds know this. And as you probably already know, typically when interest rates increase house prices will decrease and vice-versa. Thats one of the big reasons why the prices increased so rapidly back in the mid-2000s.
There were some comments earlier in this thread that debated whether it was better to have a high price and a low interest rate or a low price and a high interest rate. Id rather have the latter..you can always refinance you interest rate lower later on if the market allows and your property taxes will be lower..lower for life. You cant enjoy any of those perks with a high price and low interest rate.
Whether or not prices will decrease is all speculation at this point and this is all my speculation, but Id say they have to drop eventually. Not like 2008, but enough to keep things going..because people will not be able to afford anything with the higher interest and mortgage payments. Some areas will probably not be hit as hard l, like CA in which case I will probably get the eff out of here.
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