stoptheBS asked:
I’ll be buying another home in 18 months and I am curious what all you finance gurus think will happen to the market.
I’ll be buying another home in 18 months and I am curious what all you finance gurus think will happen to the market.
Do you think banks will be raising rates to recover their losses due to the sub-prime problems.
I am in the military and will be transferring. I will likely not be moving to any location where the homes are less than 350K for what we are accustomed to. I have excellent credit, and the home we live in now is paid off. we will take half and buy land cash for retirement and take the other 90-100K and drop into our next home. W e have no debt, but are aggressively saving toward retirement, so depending on disposable capital we will likely push for a 350K/15 to max equity. saving 6% on the house is better than a CD or risking it in a fund.
Forrest
3 Comments
The next 1220 months it will not go either way they have toned down to return credit now whatever you get in 18.
Banks don’t raise rates on one product to make up for the failure of another.
Depending on the type of loan you are planning on getting will determine your answer.
The average rate on a 30 year fixed conforming mortgage is about 6.38%… these rates are expected to stay stable or go down in the next 18 months due to the relatively low risk and good performance of the product.
if you are looking for anything like an ARM or Interest Only or you have shaky credit, unprovable income or other 1 off circumstances, rates will rise considerably due to the fact that all of these products have not been performing very well and banks have to entice investors with higher rates of return in order for people to fund them.
Any reason why you can’t buy a house now?
Read this report: