Wednesday, October 19, 2005

Interest Rates Continue to Rise

Interest Rates continue to rise. The bubble is being squeezed.
Posted by David at 3:34 AM

4 comments:

  1. AnonymousOctober 20, 2005 8:39 AM

    What amazes me is that right now, we are still talking about interest rates being lower than for most of my (30+) years on this planet, and yet the typical economic debate would characterize interest rates at 9 or 10% as extreme. At those kind of rates, the bubble will collapse into a black hole, and yet those rates are quite reasonable to expect.

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  2. DavidOctober 20, 2005 9:50 AM

    "At those kind of rates, the bubble will collapse into a black hole, and yet those rates are quite reasonable to expect."

    Great point.

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  3. AnonymousOctober 20, 2005 12:53 PM

    "causing home affordability to weaken"

    LOL. It won't cause home affordability to weaken for those of us who want to pay cash or make a big downpayment. In fact, it won't cause home affordability to weaken at all. It will make it more difficult to rent a house from the bank while it duplicitously calls you the owner, but that's about it.

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  4. AnonymousOctober 20, 2005 12:54 PM

    Also, if you start to see these defaults due to higher interest rates, you will see why those stodgy old lenders of years' past always wanted to lend at fixed rates to people who could make a 20% downpayment.

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