This Can't Be Helping Real Estate 12 comments
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Bankrate.com's 30-year average US fixed mortgage rate was at 6.5% Tuesday, which is the highest it has been since April 2002. New highs for rates can't be tempting potential home buyers to pull the trigger.
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This article has 12 comments:
Thx jegan ;-)
So who in their right mind would buy an asset class with a real rate of return (not including dollar changes) around -2 to -3% especially as their economies cool as well? Let's face it, we've been living beyond our means for years thanks to the willingness of exporters (mostly Chinese and Japanese) to subsidize our wild and woolly spending ways by buying Treasuries with little consideration for real returns.
But as some point as this trend continues, it is only logical to expect to see interest rates move continually higher until they are at least above the real inflation rate... and real inflation is rising.
Bye bye cheap and easy money, hello stagflation.