Recent house price increases due to increased purchasing power, not economy

By golfplan18   Follow   Sat, 2 Feb 2013, 8:11am   194 views   0 comments
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like   Dislike

There are many reports showing increasing home prices of 5% or more; for 2012 Case Shiller, Core Logic, NAr, Data Quick, and many others. In addition, it seems like home builders are having a rally as their stock prices have increased. However, there is one overall factor that determines home values. The main driver of this increase are mortgage rates, the cost of renting money from lenders. The home values increases not due to economic activity, increased wages, easy credit, or some sort of miracle recovery. Since 2007 mortgage rates have dropped almost 40% at the end of 2012 where...

golfplan18 is moderator of this thread.



Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail   Thank you for your kind donations

Page took 4 milliseconds to create.