Monday, October 24, 2005

ARM Interest Rates Continue to Rise


ARM Interest Rates Continue to Rise

4 comments:

  1. Looks ominous David

    I feel the housing peak has been reached up the coast here in Connecticut. Good piece tonight on local news about housing prices in the state, which have 'soared' according to the newscast, and there is 'growing concern' that a bubble has formed. They said however, that people could try 'creative ways' to buy a home with 'no money down' plans. Where the hell is their newsroom doing research? With their heads up their AS***. They continued that prices would 'only rise' 5% next year. So many in the media are uninformed, and give out silly information that is either old or just wrong. SAD.

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  2. Yeah, when they run out of one crazy, stupid way to finance obscenely large loans, they will look for others.

    Ultimately, there needs to be a cultural change to people saving more and not paying for things they can not afford without huge loans.

    When that happens, there will be a vicious recession.

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  3. I just got this email from PN Hoffman, a DC luxury condo developer that easily pre-sold condos in high demand as recently as early 2005. Now I get these emails twice/three times a week, with free cocktails and $10K in closing costs. What a difference a couple of months make- they are still stating pre-release pricing even though it was released months back. Brokers welcome, but no investors. I wonder when they will start stating "investory please"!

    Thursday Evening Cocktail Reception - October 27, 2005, 6:00- 8:00 PM

    Midtown Design Center, 1421 P Street, NW

    Please join us this Thursday evening for a Cocktail Reception in our Midtown Design Center featuring PN Hoffman's newest property The Warehouses at Union Row. The Warehouses are ideally situated in the rhythm and revival of U Street and feature over 50 townhouse-style condominiums.

    For a limited time only PN Hoffman will offer a $10,000 closing cost credit to new purchasers, provided one of the preferred lenders is used. Units are being offered at pre-release pricing and we are currently scheduling contract appointments.

    Floor plans and pricing are available on our website. Please contact Michelle Giannini, 202-232-1997, ext. 204, mfgiannini@pnhoffman.com, for more information.

    **Brokers welcome. No investors please.

    Floor plans and pricing are available on our website, www.pnhoffman.com. Use the password pnh if prompted. Viewing interactive floor plans requires the use of browser cookies. Please enable cookies on your browser.

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  4. There was a long article in the Washington Post today about young people (under 30) buying houses in the DC area with very little down.

    Really, that makes no sense unless you are buying at rock bottom prices (which no one within 50 miles of DC is). All the people interviewed "had" to have a house and they repeated the zombie mantra about renting.

    I rent in the DC area. If I completely owned (i.e. 100%) a comparable condo, I would be paying, with taxes, insurance, maintenance, HOA, etc., a few hundred less a month. That's it. You "throw away" a lot of money to own, and you have all the risk of selling your property when you want to move. If I took out a loan, I'd be throwing away gargantuan amounts of money by handing it over to various mortgage companies.

    Better to save. ARMs have made a lot of these crazy prices possible. As they rise, the market could take a real hit.

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