Comments on: The Sins of the Past – And the Death of Real Estate http://www.dennisfassett.com/2008/06/11/the-sins-of-the-past-%e2%80%93-and-the-death-of-real-estate/ Cash Flow Real Estate Investing, Training, Coaching, and Consulting Thu, 24 Feb 2011 23:50:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Brian Kurtz http://www.dennisfassett.com/2008/06/11/the-sins-of-the-past-%e2%80%93-and-the-death-of-real-estate/#comment-29 Brian Kurtz Mon, 16 Jun 2008 02:57:28 +0000 http://dennisfassett.com/?p=94#comment-29 Rates are deffinately going to head up, up, up. While you are figuring in a lot more factors than I, we're on the same page. My feelings are that rates in the 4-7% range are artificially low. Rates have been as high as 18% years ago and as low as like 4% just recently. Average is 9% I guess and that means that things are going to work out to press them back up to the norm. Further more, people want/need to buy homes. Too many people are getting denied because of the ridiculous policies of the large institutions. They seem to be stuck in a "low rate" mentatlity. Everyone trying to keep rates low...but to do that they only are lending money to those who have, pretty much, A+ credit, W-2 incomes, and full doc. Eventually lenders are going to figure out that people still need to buy homes. When they do, they'll start saying things like, "Yeah, I'll lend you the money. Half-way descent credit, but self-employed and need to go stated? Let's do it baby. Rate's going to be 13%." Eventually prices will drop to the point where it won't matter if the homebuyer is at 13%...the house is being bough so cheap that it's still affordable. Rates are going up. Rates are deffinately going to head up, up, up. While you are figuring in a lot more factors than I, we’re on the same page.

My feelings are that rates in the 4-7% range are artificially low. Rates have been as high as 18% years ago and as low as like 4% just recently. Average is 9% I guess and that means that things are going to work out to press them back up to the norm.

Further more, people want/need to buy homes. Too many people are getting denied because of the ridiculous policies of the large institutions. They seem to be stuck in a “low rate” mentatlity. Everyone trying to keep rates low…but to do that they only are lending money to those who have, pretty much, A+ credit, W-2 incomes, and full doc.

Eventually lenders are going to figure out that people still need to buy homes. When they do, they’ll start saying things like, “Yeah, I’ll lend you the money. Half-way descent credit, but self-employed and need to go stated? Let’s do it baby. Rate’s going to be 13%.”

Eventually prices will drop to the point where it won’t matter if the homebuyer is at 13%…the house is being bough so cheap that it’s still affordable.

Rates are going up.

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