[montag813]

Rates have barely budged in 2 years. I paid 7.875% in May 2000, and re-fi'ed at 5.9% a year ago. It is now 6.15%. Big whoop.

[RegulatorCountry]

5.70% overnight average on a 30 year fixed rate conventional mortgage, and falling, according to http://www.bankrate.com

[ex-Texan]

montag813 -- You need to read more slowly or more carefully. Or try to understand what you just glanced over. Thousands to people bought home in the past two years on mortgage with 2.5% - 2.9% teaser rates. People who elected to purchase $ 500,000 homes with Option ARM loans in 2004 will be getting notices of increased rates. Their mortgage payments will be going went up from about $ 1,200 a month to over $ 3,000.

Kokojmudd -- Coast2Coast has millions of listeners. I do not put any faith in what psychics claim. But the program does influence millions of people who share their opinions with others.

Both of you people ought to read the entire editorial. The writer has many uncomplimentary things to says about realtors and mortgage brokers.

[Polybius]

Rates have barely budged in 2 years. I paid 7.875% in May 2000, and re-fi'ed at 5.9% a year ago. It is now 6.15%. Big whoop.

You are not an example of the borrowers who will take it in the shorts.

The buyers that will get severely burned bought houses at overly-inflated prices because they could afford (just barely) the monthly payment with zero interest.

Now those people will have their interest go from zero to 6.15%.

[baltoga]

True, rates are still reasonable, but the loan amount is much higher. My understanding is that it will take a couple of years for the real-estate market to adjust to seller "frothing".

In my neighborhood 4 homes have been on the market for over 45 days. The sellers are definitely "frothing" with one asking $625,000 for a three bedroom.

[freedumb2003]

4.75% fixed 15 year -- I got it 3 years ago. Works for me.

[baltoga]

Interesting article. For certain interest rates are low and this bring many buyers to the "table", but personal income is lagging property appreciation by significant amounts.

Buyers are willing to be "house poor" as long as the real estate market show double-digit appreciation. However, I liken the market to a pyramid. If you're at the top, things are good, but if you're at the bottom, your gamble is buyers will continue to flock.