UNBELIEVABLE that the majority of people are STILL taking out ARM's! This bust needs to be HUGE to remind people of how things "normally" are. The end can only be when you hear "real estate is for suckers".
But it's not as if there was this other option of paying for a fixed mortgage even though the rates are something like half a percetn different. For most people, the market has already "suckered" them and they are going with the only thing they trust. Most have seen tremendous gains in the value of the RE holdings. Most know that the market has rarely had a calamitous correction and they are confident they can handle the moderate correction. Most know that they can diversify and ride The Next Big Thing whenever it arrives.
In the meantime, (waiting for this miracle) [which has happened twice already in their lifetimes people], housing personnel can be redeployed to convert space to rental units as owners and builders exit new construction.
The last month's surge in rents is said to be the main component of the CPI increase which is said to have driven the stock market down as real or alleged people took this to mean that the Fed will keep increasing the rates. (I'm with the story that the larger hedge funds took this moment to reposition themselves.) OER finally represents more accurately the real cost of housing and ironically, as rents become more popular and pricier (due to affordability issues in owning) rate increases at this point actually fuel more increases. I'm sure this mechanism will be adjusted shortly.
UNBELIEVABLE that the majority of people are STILL taking out ARM's! This bust needs to be HUGE to remind people of how things "normally" are. The end can only be when you hear "real estate is for suckers".
But it's not as if there was this other option of paying for a fixed mortgage even though the rates are something like half a percetn different. For most people, the market has already "suckered" them and they are going with the only thing they trust. Most have seen tremendous gains in the value of the RE holdings. Most know that the market has rarely had a calamitous correction and they are confident they can handle the moderate correction. Most know that they can diversify and ride The Next Big Thing whenever it arrives.
In the meantime, (waiting for this miracle) [which has happened twice already in their lifetimes people], housing personnel can be redeployed to convert space to rental units as owners and builders exit new construction.
The last month's surge in rents is said to be the main component of the CPI increase which is said to have driven the stock market down as real or alleged people took this to mean that the Fed will keep increasing the rates. (I'm with the story that the larger hedge funds took this moment to reposition themselves.) OER finally represents more accurately the real cost of housing and ironically, as rents become more popular and pricier (due to affordability issues in owning) rate increases at this point actually fuel more increases. I'm sure this mechanism will be adjusted shortly.