Another Shocking Truth You Won’t Believe About Rising Interest Rates

Comments (3)

  1. While this article has alot of solid points. The real issue is affordability and income for the housing market. Income that is needed to qualify for a 417K home is about 87K versus 67K just a few months ago. If this trend continues Home prices will cool substantially. The number of buyers for investment properties will stay fairly constant as it is less dependent on rates but the owner occupied market that makes up 65% of total sales is going to take the biggest hit with a stagnant job market and flat wages.


    Edouard d'Orange Reply:

    Excellent points, Mr. Payne. I would have liked to see Mr. Basenese mention that the current interest rate rise is only after historically low rates. Home buyers in the past have paid much, much higher rates.


  2. morton saltzman says:

    Funny stuff listening to the ragings of the herd. I wonder how many thought in 2005-2008 buying a house in rising interest rates was a good idea? Everyone, and you saw where that led. As Benjamin states above, you need specific income to afford a temporarily rising value and 1. incomes aren’t rising, and 2. values of homes will have to come down t accommodate rising interest rates. This new housing bubble is a temporary thing, just like the previous one and the one before. Housing has become more like a Vegas crapshoot than a place to ‘raise a family’. Enjoy the rise, before you don’t.


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