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Nobody is putting down 3.5% in today's market. How can you be so out of touch?
I didn't make a specific claim about how much they were or weren't putting down.
It seems you have plenty of time on your hands, contrary to your prior claim. So -- you claimed before that housing statistics are irrelevant, and that they "lag".
But the numbers that I show -- affordability against rates are robust under modest shifts that allow for "market timing" effects. If I thought you were paying any attention, I could demonstrate this with an analysis that shifted the timing of the rates by N months, and then add the resulting points to the plot. It won't substantially change the pattern.
Basically, what is going on here is that we had years of reasonably high rates and low prices, then a few years of low rates and high prices. Even if the timing of the rates and prices is slightly off, the association is pretty clear.
Indeed, you can see that locally, affordability improves when rates go down. That is, if one was somehow able to time the market and lock in the loan rate at exactly the point when the rates dropped, they would get a moderately better deal than if they waited -- because the move in prices lags slightly.
The problem is that the plot shows that price is much higher when rates are low as they are now.
I'm glad I locked in at 4.5% when I did. I have no clue how to predict housing or interest rates will trend but seeing it go up 1% in the past 2-3 weeks makes me very happy.
You're right, it was a very short time frame that yields backed up. I haven't been paying attention since I refinanced some time ago. Your locking in was extrememly intelligent, those on the fence waiting to buy have lost a bunch of money in the past month unless they are paying cash.
He means down payment. My understanding was that 3.5% was the minimum for FHA loans, and I have seen condos in downtown Jersey City advertised as having a 3.5% downpayment requirement.
And the following chart shows my interest level in the scatter charts everyone uses to try and prove their point.
Your lack of interest in the numbers might explain why you paid a middle class price to live in high density housing in a run-down blue collar neighborhood.
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