Re:Which Cities Have the Highest Risk of a Housing Bubble?
by valuearb on Monday October 26, 2020 @08:47PM
(#24903355)
I’m not saying you shouldn’t lock down these amazing rates for the long run.
I’m saying that when mortgage rates double, the cost of buying homes will effectively double. Buyers simply won’t be able to afford to pay as much and prices will plateau or even dip.
There are people paying 1M for hones in my neighborhood that sold for 500k ten years ago because their mortgage will be only $2K a month. When it’s $4K a month those buyers are gone. That’s why I’m selling soon.
I’m saying that when mortgage rates double, the cost of buying homes will effectively double. Buyers simply won’t be able to afford to pay as much and prices will plateau or even dip.
There are people paying 1M for hones in my neighborhood that sold for 500k ten years ago because their mortgage will be only $2K a month. When it’s $4K a month those buyers are gone. That’s why I’m selling soon.