palsboss

Economic Outlook: Bracing for a Rocky Road?

So supposedly home mortgage rates will drop. Possibly to 6%. But that is unlikely to spur interest in homebuying. You have to be a fool to want to buy a home right now unless there is a compelling reason (such as buying into a very good neighborhood that would otherwise have been impossible. Its all about jobs and so long as people worry about jobs then no one will buy. With unstable jobs, lenders will be really tough on lending. People seem to forget that there is a basic equation when it comes to figuring out the price of housing. Home prices will stabilize at the point where monthly payments in particular neighborhoods meet the income levels of those who choose to live there. Rather than figure out home much home you can afford, instead, you should figure out how much in monthly payments you can make and find a loan accordingly. What is the point of living in your "dream house" if you are only going to get kicked out of it after a few years. I see the takeover as a sign of how bad things are and how much worse they will get in the short run.