Can we see mortgage rates over 10% soon? (loans, fixed rate, interest)

[Kevin_nlv]

And if we do how much housing prices would need to come down?
I would think around 40%.

[lvoc]

Originally Posted by Kevin_nlv

And if we do how much housing prices would need to come down?
I would think around 40%.

Fishing? Why don't you just find the reports from the mortgage guys complaining about the "huge" run up in interest rates?

[FalconheadWest]

I don't see 10% anywhere in the near or distant future. 6-7%? Yes, probably. Not 10%.

[davebarnes]

No

[eastontracks]

they've gone up considerably just in these 6 months in 2013, but i think its gonna level out soon and maybe hit 5% and stay there for a while. in my opinion, those that wanted to take advantage of these low rates have done so and there arent as many out there left to compensate for a continued increase up to 10%. maybe 6-7% at the most.

reasoning: after going through the mortgage process, it's still very tough to get a mortgage. im barely getting by even though i thought i was in good standing. there are lots of people like me, college graduates with student loans who can't get a mortgage because their debts are too high. luckily mine isnt too bad but many 22-30 yr olds will have a higher debt to income ratio because of these loans and banks may need to look at things different 3-4 years down the road to accommodate this age group that will want a home.

all of course my opinion on one of the factors interest rates wont continue to climb much.

[TimtheGuy]

Originally Posted by Kevin_nlv

And if we do how much housing prices would need to come down?
I would think around 40%.

Rates have been at record lows and sit around 4%. The last time mortgage rates were 10% was 1990. 23 years ago!

Primary Mortgage Market Survey Archives - 30 Year Fixed Rate Mortgages - Freddie Mac

[ETex2]

Originally Posted by Kevin_nlv

And if we do how much housing prices would need to come down?
I would think around 40%.

What makes you think housing prices would need to come down? We've had high mortgage rates before, and housing prices didn't really come down at all.

[2040f]

Usually there's a correlation between rates and prices. There has been a very good adjusted chart reflecting that. If I could find it I'll post it. But 40% is insane. Maybe a little pull back accordingly.

[ETex2]

Originally Posted by 2040f

Usually there's a correlation between rates and prices. There has been a very good adjusted chart reflecting that. If I could find it I'll post it. But 40% is insane. Maybe a little pull back accordingly.

Good luck finding that. I've bought a number of homes since 1978,even when mortgage rates were as high as 17%. Very little if any movement in prices as a result of high rates. Here's a link for you:

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

[Kevin_nlv]

I'm looking forward to 10%+ interest rates, maybe 20%+.
When that happens real estate prices will collapse. That is a time to buy.
Why would you buy a house when interest rates are extremely low?
That means housing prices are inflated and homes are overpriced.