3 ms·
5% is bad after sellers got used to high sales prices at 2% (with lower rates, more of the payment goes to principal). They took away the punch bowl and the par
by 88913527 5y ago
5% is bad after sellers got used to high sales prices at 2% (with lower rates, more of the payment goes to principal). They took away the punch bowl and the party is over. The rate itself (5%) historically is not high.
- DamnYuppie 5y agoI believe it was 3-5 year ARM's they were getting which had much lower rates at the time. A lot where taken out in 2002 and on. When those rate reset higher starting in 2006-2007 things started to unravel fast.