Mortgage rates going down?

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Submitted by Coronita on February 4, 2016 - 3:43pm

Not that it matters to me, but it seems like mortgage rates are going down. I am seeing 15year fixed rates below 3%, which is lower than what it has been for the past few months.

Thoughts?

Submitted by kev374 on March 4, 2017 - 10:53pm.

What do you guys think of this analysis?

https://www.lombardiletter.com/u-s-housi...

Submitted by flyer on March 4, 2017 - 11:13pm.

Of course the analysis discussed is possible, and taking a contrarian position is always a good way to sell a newsletter, but, imo, those who do best in real estate, as with some other investments, start at a young age, buy in a down cycle and hold. That's what we've always done, and it's worked out well.

Purchasing real estate in the current environment could be dicey, but if you can afford the risk, and really want/need to own property, you will weigh all factors and decide if you can live with your decision regardless of which way the economy swings.

Submitted by moneymaker on March 5, 2017 - 4:41am.

I think there are a lot of factors that were left out of the article. Many people that were making money back in the last boom were plowing it back into the market or spending it foolishly. I think it will be a very volatile year, but the people who are smart with there money will be okay. I don't think the root cause of the last bust was the adjustable mortgages so much as the job losses and I'm still not convinced that Trump can bring good paying jobs back, but I hope he can help. Could be a brutal year for healthcare as they have had over justified growth recently.

Submitted by The-Shoveler on March 5, 2017 - 8:42am.

IMO what caused the last crash was crazy lending practices and over building.

Could the market slow as rates rise, maybe.

But I don't see a big housing market crash myself.

They would need to start overbuilding then get the crazy lending and let that run a few more years.

Anyway IMO.

Submitted by harvey on March 5, 2017 - 9:24am.

What caused the last crash was crazy lending practices.

Period.

Submitted by spdrun on March 5, 2017 - 10:03am.

And giving people with good income but no assets 0% down loans (FHA/VA) -- bank pays the down payment -- after a 100% run up in prices, at 3.5% interest doesn't qualify as crazy?

Submitted by harvey on March 5, 2017 - 10:39am.

harvey wrote:
What caused the last crash was crazy lending practices.

Period.

To be more precise, what caused the last bubble was crazy lending practices.

The crash was just a reconciliation with reality.

Submitted by The-Shoveler on March 5, 2017 - 10:44am.

Well there are different levels of crazy lending.

Giving people with no income and no documentation 100% - 120% loans is really crazy.

Now give them 10 of those loans and we are talking really really crazy.

Submitted by FlyerInHi on March 5, 2017 - 2:03pm.

moneymaker wrote:
I think there are a lot of factors that were left out of the article. Many people that were making money back in the last boom were plowing it back into the market or spending it foolishly. I think it will be a very volatile year, but the people who are smart with there money will be okay. I don't think the root cause of the last bust was the adjustable mortgages so much as the job losses and I'm still not convinced that Trump can bring good paying jobs back, but I hope he can help. Could be a brutal year for healthcare as they have had over justified growth recently.

Job losses happened after the financial crash.

The Great Recession took economists by surprise in that, unlike previous recessions, it was not an unemployment induced recession. It was a financial induced recession.

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