...meanwhile housing prices in some areas are reinstalling beyond 2006 levels juiced up by cheap interest rates. Buyers don’t care (at the moment) that housing prices have increased 10% per year, they only care about the monthly payment, thus prices have increased as interest rates decrease. If and when interest rates increase, those same inflated house prices will come down. Once again there will be numerous bag holders with a mortgage worth less than the current value of their home.
True, then again I am considering refinancing from 4 1/2%, it might save me a lot.
The Fed is never going to raise interest rates, not in the foreseeable future. If rates go up, it will be externally forced on the markets.
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