E.D.Hart

Housing: Barron's Calls a Bottom

What happens to the cost of mortgages when the interest rates catch up with the real inflation rate? And ARM's re-set?

Real estate falls...

You can believe the Barrons piece if you beleive that inflation is coming down and interests rates are not headed appreciably higher.

But we are in a huge housing bear market, and we are at a very low point in the rate rising cycle.

The capitulation ( low point) will come when interest rates are 10-15%.

Say in 5-10 years.