Tweet
What's going on? Rate drop causes mortgage rate to spike?
-
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
Deflation? :rolleyes:Originally posted by touchring View PostEd. -
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
"A vicious exit from mortgage debt, driving up mortgage rates for homeowners and buyers in an already severely distressed housing market, that was a direct result of the government’s recent announcement that it was effectively guaranteeing unsecured bank debt."
http://prudentbear.com/index.php/com...y-of-ignoranceComment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
Lets see, is it going to have inflationary or deflationary effects on RE?Originally posted by FRED View PostComment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
Inflationary if you are building new. Insurance premiums for replacement cost inflationary. Repairs and maintenance inflationary.Comment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
Exactly. Interest is an expense. This is consistent with our expectations of steady or rising input costs to households and businesses, constraining supply, raising equilibrium prices.Originally posted by a warren View PostEd.Comment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
What the deflation believers dont get is the asset price deflations are caused by living cost inflations. And they dont seem to ever meet anyone in the street and ask them about the cost of living.Comment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
I was talking about deflation of real estate assets.
You are talking about inflation of cost of living.
Fine by me as far as we understand each other.Comment
-
Re: 30 yr fixed mtg today 6.35%, last week 5.92%
Asset price deflation is certainly worsened by rising interest expense.Originally posted by friendly_jacek View PostEd.Comment
Comment