The 10-year yield cracked 3%. Technician says 4% is just around the corner (bonds, bankrupt)

[jrkliny]

No, don't count on higher mortgage rates killing the RE market. Some people seem to think the residential RE is in some sort of a bubble about to burst. Instead we are seeing simple supply and demand in action. All the economic growth has been in and around urban areas. The demand continues to increase but not the supply.

[k374]

4%??? Big drop in yields today, back at 2.95... this so called "analyst" needs to go back to the drawing board!!

[ChessieMom]

Originally Posted by Lowexpectations

Oh no 6% mortgage rates? How would anyone survive? I can’t imaging 8-12%

My rate was 7.25 when I bought my home.

[hikernut]

I suppose we could get to 4%, but really hard to imagine it's just "around the corner". Watching this tightening cycle is like watching moss grow on the north side of a tree for entertainment.

[BugsyPal]

Originally Posted by mathjak107

real estate was booming here in 1987 when i bought my first investment property . i was thrilled to get a mortgage at only 8-1/4%

Exactly!


Some people are either woefully ignorant and or simply young and clueless regarding historical mortgages in this country.


Early 2000's saw ranges ranging from 6.5% to almost 7%. For much of the 1990's rates moved between a range of 7% to a hair above 10%.


Don't let us even get started on the 1980's....


30-Year Fixed-Rate Mortgages Since 1971 - Freddie Mac

[mathjak107]

The 2007 housing bubble was between 6&7%

[mathjak107]

Originally Posted by hikernut

I suppose we could get to 4%, but really hard to imagine it's just "around the corner". Watching this tightening cycle is like watching moss grow on the north side of a tree for entertainment.

I am in the Kessler camp. He makes a strong case for seeing the low 2% range before seeing 4%

[Yippeekayay]

Former boss showed me his original mortgage rate. 11%.

[macyny]

I refinanced my mortgage in NY for 6 1/2% in 08 and thought I got a bargain! I was paying over 8%.

[mathjak107]

When we bought our first investment property in 1987 real estate was booming and we still had the co-op craze going on . Mortgages were finally below 9% so real estate was hot.

Mortgage rates only go up because bond rates go up. Bond rates are tied to the general economy and if it is booming then higher rates are fine .

If prices were tied to mortgage rates than the mid 2000’s should have seen prices soar instead of collapse