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Future loan terms determine future house prices

By golfplan18   Follow   Mon, 26 Nov 2012, 11:00pm PST   292 views   1 comment
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Most people just assume house prices always go up. Their faith was shaken by a precipitous decline over the last six years, but once the bottom is securely in the rear-view mirror, kool aid intoxication in faith-based appreciation will undoubtedly return. I want to revisit the idea of future house prices depending on future loan terms because it makes a strong case for weak home price appreciation going forward. The how and why matters, and before kool aid takes hold again, it pays to understand what it would take for house prices to go up from here.

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Oil Can   Mon, 26 Nov 2012, 11:01pm PST   Share   Quote   Permalink   Like   Dislike     Comment 1

Watch the FHA drama over the next few months. I predict full bailout with increased fees. Still only 3.5% down.

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