sgip
Well-known member
With rates still marching towards 5%, and ARM loans qualifying in the mid 4's, at what point in the rate cycle do you say "hmmm.... I'm gonna rent for now".
Sure, when doing the math, some buyers may pass at 5% because the benefits don't outweigh the cost. For others a 5% mortgage rate with 10% appreciation rate makes the loan factor a non issue. Some buyers when facing a rate in the 5's scrunch their face as if you've said something about how ugly their children are. A buyer may decide "I don't deserve a rate in the 5's...." and pass on a home purchase.
As a buyer, what would be the red line in rates for you?
My .02c
Sure, when doing the math, some buyers may pass at 5% because the benefits don't outweigh the cost. For others a 5% mortgage rate with 10% appreciation rate makes the loan factor a non issue. Some buyers when facing a rate in the 5's scrunch their face as if you've said something about how ugly their children are. A buyer may decide "I don't deserve a rate in the 5's...." and pass on a home purchase.
As a buyer, what would be the red line in rates for you?
My .02c