[Kevin_nlv]

Originally Posted by lvoc

Nonsense. You don't seem to remember that i am in the business. Have talked to and gotten pre-qual commitments for 3 clients in the last 5 days. One homepath, one FHA and one conventional. The mortgage brokers are not in panic mode. One rate was 4.25% the others under 4.

If you are in the business then why would you come out here and try to downplay this dramatic mortgage rates increase in past week.
Once again last week was the WORST WEEK for a mortgage rates on record and every respectful and honest mortgage broker would tell you that.
Why can't you do the same thing?

[lvoc]

Originally Posted by BBMW

Other then the massive disruption of the 2007-8 collapse and its aftermath, which had lots of other issues besides interest rates, it looks like it holds pretty well.

Let’s start with history. The chart does not show too much of an inverse correlation, except maybe for the early 1980s. Here’s a table of changes. I took every case from 1976 through the present in which mortgage rates rose by one percentage point or more. I then looked at the FHFA’s Home Price Index for that period. It turns out that in every case, home prices rose over the period in which mortgage interest rates are rising.



When Mortgage Rates Rise, Will Home Prices Fall? - Forbes

[lvoc]

Originally Posted by Kevin_nlv

If you are in the business then why would you come out here and try to downplay this dramatic mortgage rates increase in past week.
Once again last week was the WORST WEEK for a mortgage rates on record and every respectful and honest mortgage broker would tell you that.
Why can't you do the same thing?

Because it is likely a transient driven by the weird behavior in the reaction to the fed.

Mid July would be the earliest date when we will see if anything has changed.

But even this purported up is well below the threshold at which the buyers will respond.

The problem the buyer has is not interest rate.

[Kevin_nlv]

Originally Posted by lvoc

Let’s start with history. The chart does not show too much of an inverse correlation, except maybe for the early 1980s. Here’s a table of changes. I took every case from 1976 through the present in which mortgage rates rose by one percentage point or more. I then looked at the FHFA’s Home Price Index for that period. It turns out that in every case, home prices rose over the period in which mortgage interest rates are rising.



When Mortgage Rates Rise, Will Home Prices Fall? - Forbes

Why don't you look at those numbers and charts:
Las Vegas Nevada Household Income | Department of Numbers

Real Median Household Income for Las Vegas Nevada is not rising......IT'S DECLINING!!!!!!
3 year change is at negative 18.59%

[Kevin_nlv]

Originally Posted by lvoc

Because it is likely a transient driven by the weird behavior in the reaction to the fed.

Mid July would be the earliest date when we will see if anything has changed.

But even this purported up is well below the threshold at which the buyers will respond.

The problem the buyer has is not interest rate.

Buyer problem is inflated housing prices that need to come down significantly.

[lvoc]

Originally Posted by Kevin_nlv

Buyer problem is inflated housing prices that need to come down significantly.

No it is not!

Buyers req1uiring finance are basically limited to HUD and Homepath homes. That is the problem. They cannot buy anything except those restricted to owner occupants. .

[Kevin_nlv]

Originally Posted by lvoc

No it is not!

Buyers req1uiring finance are basically limited to HUD and Homepath homes. That is the problem. They cannot buy anything except those restricted to owner occupants. .

Well maybe once we hit 6% - 7% mortgage lenders will lend again.
Home prices will need to adjust accordingly since median houshold income in Las Vegas has declined close to 19% in past three years.

"Based on the change in mortgage rates from early May to today, the average buyer would have to pay 13 percent more in monthly payments, including taxes and insurance, according to Mark Hanson, a California-based analyst. They also have to earn 10 percent more in income to qualify for a loan based on a typical qualifying debt-to-income ratio of 45 percent.

"These are huge moves especially considering -- when purchasing a house using a mortgage -- most people buy based on 'monthly payment and the maximum allowable debt-to-income ratio.' This means first-timer share will fall even further. They are already at a multiyear low even with record-low rates," said Hanson."

It looks like Mark Hanson knows better his stuff then you do.

[Tarara Boomdea]

100.5 FM, 840 AM - good for local info.

[lvoc]

Originally Posted by lvnyc

100.5 FM, 840 AM - good for local info.

Lousy info. He promotes only himself and his mortgage side kick. Mostly he says nothing except that he is the short sale expert and that you should sell now because it will be worse later.

[lvoc]

Originally Posted by Kevin_nlv

Well maybe once we hit 6% - 7% mortgage lenders will lend again.
Home prices will need to adjust accordingly since median houshold income in Las Vegas has declined close to 19% in past three years.

"Based on the change in mortgage rates from early May to today, the average buyer would have to pay 13 percent more in monthly payments, including taxes and insurance, according to Mark Hanson, a California-based analyst. They also have to earn 10 percent more in income to qualify for a loan based on a typical qualifying debt-to-income ratio of 45 percent.

"These are huge moves especially considering -- when purchasing a house using a mortgage -- most people buy based on 'monthly payment and the maximum allowable debt-to-income ratio.' This means first-timer share will fall even further. They are already at a multiyear low even with record-low rates," said Hanson."

It looks like Mark Hanson knows better his stuff then you do.

[mod cut- personal] The monthly payment is not an issue. Buying anything is.

You believe Mark Hanson is licensed to practice RE in Nevada? I doubt that.

Just went out and signed a buyer for something over 200K. He has pre-approval for probably twice that and likely could pay cash if pressed.

There is no problem getting financing...but until you get up above 200K you can't buy anything with it.