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> Buying a house is fighting the fed now. Doesn't a tightening environment drive down prices (favoring the buyer today) and open the prospect of refinancing ne
by jjoonathan 5y ago
> Buying a house is fighting the fed now.
Doesn't a tightening environment drive down prices (favoring the buyer today) and open the prospect of refinancing next time the fed chickens out (favoring the buyer tomorrow)?
"Oh, high prices, I have just the cure: debt!" is usually a sales gimmick, not something that favors the buyer. What am I missing?
- adam_arthur 5y agoThe best time to buy is after transitioning from tightening to easing generally. It's true that price will move inversely to rate (all else equal), but price effect lags the rate change. If rates stay at 5% or above we can expect prices to likely start to slowly decline in many areas. It took 5 years for prices to bottom in the 2000s. Housing is a slow moving market
- jjoonathan 5y agoAh, got it, that makes sense. Thanks.