Did not know that.
I`ve been keeping an eye on LV and the vast majority is private institutions scooping up foreclosures and immediately re-listing for 50 - 100% more than the purchase price. It`s pure speculation out there right now. An attempt to try make it look like individuals are buying hoping you take the bait and hand the real estate holders huge profits off their flip.
Manipulating public perception is SOP and bankers along with the FED have a vested interest in doing so. That said, I’d hate to miss a bargain.
Keep in mind this rule of thumb:
a 1% increase in interest rates equals about a 10% drop in price to maintain the same monthly payment.
So are you buying the price or the payment?
We’re not likely to see 3% mortgages again in our lifetimes. But, if interest rates rise will your value drop?
That’s the problem the FED faces and the fundamental issue in manipulating the economy with ZIRP.