Quote:
Originally Posted by The Yen Man
My completely non professional opinion is that yes, interest rates will inevitably go up, but probably to the 4-6% range max in the next 5 years; enough to cool down the housing market, but not enough to tank the economy. I just can't see it hitting the 8% mark when the US economy is still in shambles.
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I'm no expert either, but what is very interesting to me is say we take the current median house price $354 K ($450K SFD) and assume a rare substantial downpayment of 20%. A hike of "just" 5% is what, $1200-1500 a month MORE in costs? Where does first time home buyer interest sit then? And five years might be a little optimistic view of timing - who knows though.
http://www.cbc.ca/smartshift/2010/02...d-cd-howe.html