3 ms·
> Why do you think housing is a safe haven? Interest rates will continue to rise, thus making a monthly mortgage payment more expensive. People can flat out not
by tablespoon 4y ago
> Why do you think housing is a safe haven? Interest rates will continue to rise, thus making a monthly mortgage payment more expensive. People can flat out not afford to purchase homes at these levels if interest rates rise. It's simple math.
But if you get your mortgage now, you don't have to worry about those future increases. IIRC, most American mortgages are fixed rate.
- ejb999 4y agoyes, but you still risk paying too much, and then if you have to sell for any reason, risk taking a huge loss. Lots and lots of people lost a ton of money in real estate during the 2008 downturn by overpaying and then being forced to sell.
- chasebank 4y agoThe price of a home doesn't really matter. You're effectively buying yourself a monthly payment. $1M 30 yr loan @ 3% vs 7% is $4,200/mo vs $6,600/mo.
- deleted 4y ago[deleted]
- JTbane 4y agoIf interest rates do go up a lot, there is a good chance housing will crash, at least proportionally.