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Agree. And where are the indications that interest rates will rise substantially any time soon? I'm not saying that's impossible, but this piece seems to take i
by twoodfin 13y ago
Agree. And where are the indications that interest rates will rise substantially any time soon? I'm not saying that's impossible, but this piece seems to take it as an article of faith that we're in a period of unsustainably low rates.
- dxhdr 13y agohttp://mortgage-x.com/images/graph/fhfb_contract_rate.gif http://mortgage-x.com/images/graph/fhfb_contract_rate.gif We are in unprecedented territory here, interest rates have never been this low. Is it sustainable? Who knows. Given history I'd be more inclined to believe it's not.
- twoodfin 13y agoDoesn't that chart contradict the article? Home prices didn't decline from 1960 to 1980, as interest rates climbed dramatically: http://www.multpl.com/case-shiller-home-price-index-inflation-adjusted/ http://www.multpl.com/case-shiller-home-price-index-inflatio... There's obviously some relationship there, but it's not as clear cut as this article makes it out to be.
- wonnage 13y agoIt's already happening: http://www.bloomberg.com/news/2013-09-17/less-tapering-becomes-tightening-credit-no-matter-what-fed-says.html http://www.bloomberg.com/news/2013-09-17/less-tapering-becom... Considering that for a period of time it was practically free to borrow money (interest rate < inflation), I don't think it's that unreasonable to describe that as "unsustainable".