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Old 06-20-2018, 03:48 AM
 
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nonsense . there is so much more to housing pricing than rates . 2006 to 2007 when home prices were booming we had 6-7% mortgages . back when i got my first mortgage housing was also booming and i was thrilled at 8-1/4% to get a mortgage at that rate .


local markets , supply and the general economy play a much greater role in home pricing until interest rates get way high .
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Old 06-20-2018, 07:21 AM
 
Location: Greenville, NC
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Debt = Money, Money = Debt
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Old 06-20-2018, 08:28 AM
 
8,297 posts, read 3,461,858 times
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Quote:
Originally Posted by C2BP View Post
What is more important Hoonose, the house price or interest rate? An advantage to buying at a lower home price compared to having a lower interest rate is that your home can be refinanced or modified in the future. It's better to buy when interest rates are higher and house price is lower. Higher interest rates = lower house price. Imagine what would 8%+ interest rates do to the current housing prices......it would cut it in half.
IMO the most important aspect for the average buyer is monthly payment. And interest rates make a huge difference.

https://www.ubu.bank/what-difference...rate-make.html

Virtually no one where I lived was buying at 14% back in 1981. Except me. And at 14% I could have walked away per my buying contract. I was one of the first locally to convert to an ARM.
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Old 06-21-2018, 02:06 AM
 
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best home appreciation has been in the 7% range historically . to see 7% means the economy is humming and people have money to spend on homes . in fact the markets tend to get a boost as people adopt the ole we better buy now before we can afford even less home view putting upward pressure on prices .

rates have to go way up before you can say that rising rates bring home prices down as a general statement . .
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Old 06-21-2018, 06:20 AM
 
12,404 posts, read 9,212,610 times
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Quote:
Originally Posted by C2BP View Post
Yes, our economy has been dead since 2001 and we used debt or money stolen from the future to simulate economic growth. Our economy couldn't grow organicaly since 2001 so we faked economic growth with debt spending and now we are the most indebted country that ever existed in the world. We are totally broke as a nation, debt junkies addicted to debt.

We created illusion of growth with money stolen from the future, from our kids and grandkids. We destroyed our kids and grandkids future to protect status quo, to protect old world that died in 2001. We are stil protecting the old world, the old debt that we should be destroying since 2001. Fed criminals used insane policies like QE and Zirp to create biggest bubble in assets (stocks and real estate). For 17 years now you all have been manipulated by the Fed and our corrupt Government. Since then, since 2001 the biggest shysters and thieves, speculative people with criminal minds have become winners in our society and responsible people, savers have become losers and victims of insane Fed policies.

Three basic things in life = shelter, education and healthcare became unaffordable for most Americans. Our housing market turned into a casino game, American homes are investments now used for trading and rent scheme. We have real estate offices open in Hong Kong and other Chinese cities advertising our homes, American homes to foreign nationals. Our fellow citizens are priced out from buying a house and forming a family and competing with various world wide speculators and shysters. We desperately need a law like it was passed in New Zealand prohibiting foreigners to buy American homes. We need to end speculations in Real Estate. NAR (national association of realtors) needs to be dismantled and top people charged with crimes + treason.

It's easy to end this madness since 2001. All you have to do is keep raising interest rates and make our dollar, our currency stronger. Strong dollar will end all speculations, will force speculators to exit and liquidate all their assets, will free housing inventory. Strong dollar will pop this bubble, will end this madness, will end this fake economy created with debt. Yes, we all will feel some massive pain and suffering but after that we can build our new real economic growth. You all have been played by the Fed. Our economy has been dead since 2001. Everything is a lie today, illusion!!!

Our economy can't grow normaly again until we allow deflation and depression to do its job and until we destroy all bad debt that our Fed is protecting with low interest rates. We need much higher interest rates and then you will see house prices and rents cut in half or more, healthcare and education cut in half and more, gas prices and everything else cut in half or more.

Wake up people, you all have been played since 2001!!!!
You say all of this, but you don't present any calculation, so why should I believe the headline is anything but pure sensationalism?
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Old 06-21-2018, 06:33 AM
 
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sensationalism in the economics forum , how can that be ? clearly you did not get the memo .... nothing ever can play out differently than some of the views here .
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Old 06-22-2018, 06:50 AM
 
4,748 posts, read 2,268,925 times
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Quote:
Originally Posted by C2BP View Post
Higher interest rates = lower house price. Imagine what would 8%+ interest rates do to the current housing prices......it would cut it in half.
You sure talk a lot without regard for actual facts aligning with what you're shoveling. One of the sharpest historical interest rate increases was the five year period from 1977 to 1982, did that lower home prices? Clue = nope.





Your posting history is littered with hilariously horrible predictions everything from Netflix to gold, and your historical references are just flat out incorrect. Don't quit your day job.
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Old 06-22-2018, 06:51 AM
 
64,704 posts, read 66,206,532 times
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now, now , you are letting facts get in the way of some very nice story lines . of course the next story is how the fed manipulated the housing prices in the chart
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Old 06-23-2018, 12:12 AM
 
740 posts, read 404,354 times
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Quote:
Originally Posted by lieqiang View Post
You sure talk a lot without regard for actual facts aligning with what you're shoveling. One of the sharpest historical interest rate increases was the five year period from 1977 to 1982, did that lower home prices? Clue = nope.





Your posting history is littered with hilariously horrible predictions everything from Netflix to gold, and your historical references are just flat out incorrect. Don't quit your day job.
Your charts are misleading? Why not go back 100 years so that everyone can have a better picture?
You can see from the chart attached that since 1947 housing prices remained relatively stable through the late 1990s, with the exception of some cyclical activity in the late 1970s and late 1980s. Notice the price decline from 1979 when housing demand peaked followed by the energy crisis and record-high mortgage rates.

Nice try lieqianq, nice try
Attached Thumbnails
No real economic growth since 2001. How our Government and the Fed have fooled you with debt-real-home-price-index.png  
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Old 06-23-2018, 02:38 AM
 
64,704 posts, read 66,206,532 times
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it is not until rates get way high that there is a link to home prices . home prices are and always will be linked more to local; markets , supply and the general economic health of the economy . there is no disputing this .
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