Housing Market
Well, it's official. The housing market is cooling off, and it's happening all over. Home purchase contracts are down 8% from last year, the average 30-year fixed mortgage is now over 6.5% (up from 5.2% last year) and may hit 6.75% by the end of the year, and sellers are starting to slash their prices. Winter is always slower, but when things don't pick up come Spring, watch sellers wake up en masse, and then the party will really begin.
posted by Knute Rife @ 2:40 PM
2 comments
2 Comments:
Yes, it is really going to be interesting and what is really going to make things crash is all this "creative financing" that has been allowed. Hey, there is no free lunch in life.
When the interest rates on those loans take off, people are really going to be hurting.
Nancy
Yep, that's what I keep saying. The creative financing has taken all the margin out of the market. When the gears start to slip, there will be no slack left to take up. We have more interest-only, balloon, and high-leverage debt out there than at any time since the 1920s, and we know where that went.
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