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Originally Posted by username
It's hot now but the question is will it remain hot once all these 2.99% rate holds are gone? I'm quite certain that the reason the sales numbers are up is because of the all time low rates.
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Quote:
Originally Posted by troutman
I think low rates might be part of the surge, but rates were low the last two years too.
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Indeed, interest rates in 2010 & 2011 were pretty much the lowest ever over the last decade. And the home sales for those two years ended up being the poorest for roughly the last ten years. (That still surprises me given cheap money being handed out and the massive growth in the city since a decade ago.)
I recall joking that comparing sales numbers against 2010 sales numbers last year (2011) was like saying you can outrun a sprinter at the special olympics.
Who knows, maybe they'll knock rates down to 1.99% and get a bump again when you compare against those poor years. Mathematically easy to be percentage points higher against a small number.
