In case you missed it, mortgage rates hit a 7-month low today, and new loans and refis had their biggest spike in 5 months. Activity in NYC has really picked up in September (I know, NYC is "different", but still)
Activity in NYC is a lot of European money and midwestern/southern money. These are the guys who traditionally get burned...
I saw that. There will come a point where it won't matter how much they lower rates. When Japan's real estate market tanked, they were offering loans at zero percent and there were still no takers.
I live in Spokane, WA, and in comparison to other similiar markets around the country Spokane is still very reasonable for housing costs.
To the east of us in Northern Idaho prices have gone up drastically. To the west of us near the cascades in Chelan County property has gone up drastically. Here in Spokane you can still get a nice 5 bedroom/4bath/3 car garage in the low 400's. These are 4000+ sq ft homes.
I don't know about the rest of the country but with one kid here, one due in a few months, and a third planned my wife and I are preparing the home we live in now to sell in the Spring and upsize in a better school district.
I hate to lose out on my fixed 4.6 15 year note though. :(