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Housing Market Rebound by 2010? Not Likely

for: nyoneway

One doesn't sell one's portfolio early in a bull market. One sells one's portfolio after the bull market has collapsed and a 'new' bull market has supposedly materialized.. It's all psychological. If a stock (or a house) drops 50%, many people feel they've come out a little bit better if they can now get 51% for their asset. A portfolio is supposed to be liquid and evolving anyway, not something stuck in mud just because prices are going higher or lower. How many Citigroup, or BofA folks (etc)., wished they had sold when the 'market improved' after the initial collapse?

Housing Outlook: Real Estate Reality

If you believe (as I do) that the government printing presses will lead to higher interest rates, then shouldn't we all agree that 3/1 ARMs, 5/1 ARMs, 5/1 ARMs Interest Only, and 7/1 and 10/1 ARMs are also all 'teaser rates'? While a 30 year fixed may be 1% or more higher than the Administration's teaser rates of 4.75%, it will make you sleep better at nights knowing you're not going to be whipsawed for the next 30 years. If you can't afford the 30-year fixed, then DON'T buy the house.