Effect of inflation on future housing prices

[usctrojanman29_IHB]

Who said anything about inflation? I'm with Mish - this is an oversupply problem, totally deflationary. Have you seen my milk thread?

I also think interest rates are going to the moon.

Interest rates =/= inflation.

How could interest rates go to the moon (especially short term rates) if there is significant overcapacity in the system and the world economies have no growth?

 

[no_vaseline_IHB]

At some point, investors are going to demand risk premium.

The US gmnt. is borrowing at a torrid rate, and with the structural deficits to come in SSI and Medicare.............do you disagree?

 

[usctrojanman29_IHB]

At some point, investors are going to demand risk premium.

The US gmnt. is borrowing at a torrid rate, and with the structural deficits to come in SSI and Medicare.............do you disagree?

I do agree with you. Sooner or later something will have to give...either we stop/slowdown the lending or pay higher rates. Not sure what longer-term rates will be in the next few years but short-term rates will remain low for at least the next few years.

 

[awgee_IHB]

At some point, investors are going to demand risk premium.

The US gmnt. is borrowing at a torrid rate, and with the structural deficits to come in SSI and Medicare.............do you disagree?

Why Mr. No_Vas, how diplomatic you have become.

 

[asianinvasian_IHB]

What happens to RE values when interest rates start bumping 10% (in the bag) or 15% (maybe) or 18% (I'm in Awgee territory now)?

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Better lock in that 4.5% rate now.

 

[usctrojanman29_IHB]

At some point, investors are going to demand risk premium.

The US gmnt. is borrowing at a torrid rate, and with the structural deficits to come in SSI and Medicare.............do you disagree?

Why Mr. No_Vas, how diplomatic you have become.

It's the new kinder/gentler Mr. No_Vas. haha

 

[no_vaseline_IHB]

What happens to RE values when interest rates start bumping 10% (in the bag) or 15% (maybe) or 18% (I'm in Awgee territory now)?

(embedded video no longer available)

Better lock in that 4.5% rate now.

Think I could lock it in for, say, three and a half years?

That contaiminated water they pipe into that cesspool Villages of Columbus is pickling what little is left of your brain.

 

[usctrojanman29_IHB]

What happens to RE values when interest rates start bumping 10% (in the bag) or 15% (maybe) or 18% (I'm in Awgee territory now)?

(embedded video no longer available)

Better lock in that 4.5% rate now.

Think I could lock it in for, say, three and a half years?

That contaiminated water they pipe into that cesspool Villages of Columbus is pickling what little is left of your brain.

The funny thing is that is a derivative out there that would allow you to buy a rate lock forward to lock in that 4.5% rate 2-5 years out. Problem is that you better have some deep pockets if rates move against you (go lower) because you'll be writing big checks to keep the counterparty at bay. I remember I had a borrower at BofA (a RE developer) who picked up a forward against a construction loan to lock in a low perm loan rate 2 years out after the property was built and stabilized. Well, rates ticked up 18 months later and the borrower sold the property so he had to unwind the forward for a hefty $2MM profit in addition to the big gain from the sale of the property.