things are getting worse (Seattle, Bellevue: real estate, mortgages, refinance)

[irrational exuberance]

In a time of stagflation and diminishing dollar, prices are going way up while the government focus on bailing out investment banks and banks who made millions off sub prime loans. Now Seattle posted its first depreciation on home prices. Surely in an economy built on optimism and credit how could anyone doubt this was going to happen. Its more convenient to rely on optimism than an firm understanding or fiscal and monetary policy. We are making less than in the 70s when adjusted for inflation but the introduction of credit cards and home equity has put Americans in the most debt they have ever been in. I guess now we wait for the 600 per person rebate and once that is deemed a success in the 4 Quarter of this year, interest rates are going to aggressively rise to hedge inflation....we if we look at the reports they praise it when they dont include food and energy but then again that affects EVERYONE. If your planning to buy a house, you may have to choose between to really cheap prices or low interest rates. It all depends on how low rates are going to be but I dont see 30 year rates going under 5.5% seeing how the rate cuts for the banks. Dont take my word, just look at the rates of 30 yr mortgages.

[St.Croix to Seattle]

One thing is for sure you have a very grim outlook,,,Seattle will be just fine,more and more research shows Seattle area buyers are conservative and tend to buy homes they can actually afford,thus carrying a proper loan....
On the other hand you are starting to bully your view so much that even my wife is paying attention...Wait maybe we can get a better deal,maybe we can live across from the water!,give it a few more months!
But just let me know this and I will wait with you our rush out and get our home...if home values in Seattle fall 15%,but interest rates get to 18% to borrow for well qualified buyers meaning 700+ Fico,Good Documented income,25% down and income within 10% plus or minus for a like borrower in same zip code(which is now a standard most banks are including in their underwriting)...So if you are an Tower Crane operator in Bellevue and make 100K per year but the average salary is 60K per year,certain large banks including Wamu will reject your A+ application....Banks are losing most of the money they stole over the last decade,with the current ecomonic climate there will be only 2 ways to raise revenue-higher banking fees and higher interest rates on money they loan as happened in the past..I spoke with a 54 year old guy that bought a 100k home in Los Angeles in the mid 1980's with good credit his interest rate was 18%.The United States is bankrupt,major banks are nearly bankrupt,we have high inflation and the average household has high debt,with high interest & are paying small payments with worthless paper dollars,the Foreign Born(including myself) are flooding the United states right now with Euro's,pesos,rupies and even the Lune and are buying everything from Real estate to classic cars for pennies on the dollar and we should wait to buy a home if our job is stable and income is good?

[Balco9]

Originally Posted by St.Croix to Seattle

One thing is for sure you have a very grim outlook,,,Seattle will be just fine,more and more research shows Seattle area buyers are conservative and tend to buy homes they can actually afford,thus carrying a proper loan....
On the other hand you are starting to bully your view so much that even my wife is paying attention...Wait maybe we can get a better deal,maybe we can live across from the water!,give it a few more months!
But just let me know this and I will wait with you our rush out and get our home...if home values in Seattle fall 15%,but interest rates get to 18% to borrow for well qualified buyers meaning 700+ Fico,Good Documented income,25% down and income within 10% plus or minus for a like borrower in same zip code(which is now a standard most banks are including in their underwriting)...So if you are an Tower Crane operator in Bellevue and make 100K per year but the average salary is 60K per year,certain large banks including Wamu will reject your A+ application....Banks are losing most of the money they stole over the last decade,with the current ecomonic climate there will be only 2 ways to raise revenue-higher banking fees and higher interest rates on money they loan as happened in the past..I spoke with a 54 year old guy that bought a 100k home in Los Angeles in the mid 1980's with good credit his interest rate was 18%.The United States is bankrupt,major banks are nearly bankrupt,we have high inflation and the average household has high debt,with high interest & are paying small payments with worthless paper dollars,the Foreign Born(including myself) are flooding the United states right now with Euro's,pesos,rupies and even the Lune and are buying everything from Real estate to classic cars for pennies on the dollar and we should wait to buy a home if our job is stable and income is good?

Homes prices are due to go up, so now is the time to buy!!!!
Rates will go up not down again, period!!!!!!!

[madicarus2000]

Here is my two cents, if you find the place you really like and it is in your price range and you know you can afford it, then buy it. If you are in a place and looking at staying long term and rates are lower and it makes sense to refinance, then do it. If you're not sure you want to buy a house because of market conditions, then dont.