The Race Is On... To 6.0% Mortgages And Housing Bust 2.0

The Race Is On... To 6.0% Mortgages And Housing Bust 2.0

Authored by Wolf Richter via WolfStreet.com,

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Mortgage rates are climbing faster than the 10-year Treasury yield.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) and a 20% down-payment rose to 5.17% for the latest reporting week, according to the Mortgage Bankers Association(MBA) today. This is the highest average rate since September 2009 (chart via Investing.com😞

 

https://www.zerohedge.com/news/2018-11-16/race-60-mortgages-and-housing-bust-20

 

Black Blade: I own rental properties and on paper have made outstanding gains on property values. I have been looking at other properties but rising prices and rising rates are keeping me out of the market for now. Instead I am parking cash in a few select investments like Telecoms and some REITs (although limited ... again due to rising rates). Another real estate bust would be welcome for me as I would once again look at adding to my rental property LLCs. The outlook now looks a bit choppy so in effect i am keeping my powder dry. 

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Interesting information.  There seem to be many strong factors leading to another housing bubble bursting:  credit overextension by all the lenders, interest rates, prices, etc.

What do you think?  Is a bubble about to burst?  In fact, are bubbles in both real estate and the larger financial industry about to burst?

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