impact of Fed Interest Rate on Dallas Housing ? (Liberty, Howe: loan, home)

[jdallas]

mortgage rates were double digit in the 80's and people still purchased homes.
Hopefully, ending cheap money will finally kill off the amateur flipper industry.

[J.Thomas]

Originally Posted by EDS_

1. Why should the Fed. raise short term rates?
2. Aren't you the person who mis-stated the Fed's Balance sheet the other day?

1.To let some air out of all bubbles.
2.Exactly. It has to shrink. Almost $5T!! Ridiculous.

A quarter of GDP

[Johnhw2]

Originally Posted by jdallas

mortgage rates were double digit in the 80's and people still purchased homes.
Hopefully, ending cheap money will finally kill off the amateur flipper industry.

Home prices were significantly lower too dont ignore the elephant in the room

[EDS_]

Originally Posted by J.Thomas

1.To let some air out of all bubbles.
2.Exactly. It has to shrink. Almost $5T!! Ridiculous.

A quarter of GDP

You know not single person here who cares at all about this stuff misses that fact that you don't know what you are talking about.

[Rakin]

Originally Posted by TurtleCreek80

My opinion only: short-term (2016) will cause a bigger buying frenzy as people rush to lock in historic low rates. Long term (2017+, assuming rate increases continue ticking upward), will slow the price increases down considerably as home ownership becomes more expensive (prices + rates).

I think DFW has one more boom year for residential real estate ahead (disclaimer: barring any sort of national economic disaster).

This exactly. Rising rates actually causes a boom in sales until rates reach a very high level.

Anything below 5-6% is artificially cheap.

[richard88]

Originally Posted by Rakin

This exactly. Rising rates actually causes a boom in sales until rates reach a very high level.

Anything below 5-6% is artificially cheap.

I'll lock it by next week !
Closing the deal !

[gocubs418]

Originally Posted by EDS_

1. Mortgage rates are not closely tied to FOMC/Federal Reserve actions in the short term. In the past when the Fed. would tighten mortgage rates would increase and most times then gradually decrease a bit. As we've been at zero-bound short rates for years no one really knows what will happen this time around.

2. In the past as long rates/mortgage rates increased mortgage applications and house closings held strong long into the higher rate environment with the strongest markets acting last.

3. I'd be really surprised if mortgage apps. fall much until long rates have increased a good bit.

This guy knows what he is talking about. Mortgage rates are not tied to Fed actions.

I do however believe a housing bubble is coming in 2017-2018 for DFW. All the Jones who overreached will feel the hurt.

[richard88]

Originally Posted by gocubs418

This guy knows what he is talking about. Mortgage rates are not tied to Fed actions.

I do however believe a housing bubble is coming in 2017-2018 for DFW. All the Jones who overreached will feel the hurt.

Yup, 2017-2018 ... that's when the Toyota & Liberty Mutual opens and start moving their employees in...

[gocubs418]

Originally Posted by richard88

Yup, 2017-2018 ... that's when the Toyota & Liberty Mutual opens and start moving their employees in...

Sorry, I forgot you can read the future like me.......

I'm obviously guessing. Toyota and Liberty Mutual have already begun the moving process. Don't fool yourself.

[Johnhw2]

Originally Posted by gocubs418

Sorry, I forgot you can read the future like me.......

I'm obviously guessing. Toyota and Liberty Mutual have already begun the moving process. Don't fool yourself.

They both have small teams here now to plan and design the new operation here. Beginning in early 2017 we will see the remaining 80% of the staff appear. School timing makeg summer the move in here for the masses coming after the two new campuses are completed mid 2017.