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Originally Posted by Danijam
Hmm... I wonder if that will stay the same once interest rates rise.
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Good question....I think that the most vulnerable home owners from higher interest rates will be the younger demographic that probably wouldn't have been home owners at historical rates (6-7%) but were able to get into the market due to record low interest rates and wacky products like 0/40 and 5/35 term mortages. They'll have no home equity and have trouble with the increased mortgage payments (assuming lenders will qualify them again) on top of high consumer debt.
I think you'll see areas like the deep suburbs and condo market where this is a high demograpic take the largest hit. We're probably already seeing this which is why the high end luxury homes are doing the best.