patrick.net

LFMAO?

Bigsby says

LFMAO?

Laughing my fucking ass off

How long before 5%?

It is funny but I refuse to help you find your ass if you lose it.

So they cycle of bust begins.

Interest rates rising is not a reflection of the economy improving in fact it is
de-leveraging an enormous amount on a daily basis. .

Watch all those fools get ARMS again!

The commercials are already starting.

Now I'll have to find out how many ARMs are going to reset 2013-2014.

HELOCs could be a lot of fun.

http://www.thetruthaboutmortgage.com/the-heloc-resets-are-coming-should-we-worry/

puhim says

Bigsby says

LFMAO?

Laughing my fucking ass off

Indeed, but then that would be LMFAO.

I'm still waiting for rates to skyrocket to 15% like they did in the 1970's.

You won't be alive SJ

Bm05211983 says

You won't be alive SJ

When the Fed cuts off banks from the morphine drip, they will want a fix. First just a little, but then a little got more and more.

SJ says

I'm still waiting for rates to skyrocket to 15% like they did in the 1970's.

Me, too. My savings would do quite nicely :-)

People will rush to buy before interest rate goes higher.

House price double in 5 years?

anything that cools off the RE market is a good thing.

That decade chart doesn't show the RE collapse of mid 80's or the interest rate kept climbing to damn near 15%.

Smallblock57 says

If you look a similar chart in "real" prices they actually did.......

Excellent. Can you show me a house that I can buy with "real" dollars then?

bg says

Me, too. My savings would do quite nicely :-)

Guess what your savings will not increase as the savings rate will "NOT" be raised.

Now all the banks will be ramping up forecloses and dump that hidden inventory on the market to unsuspecting buyers.

Of course this was going to happen, you think the scum banksters will put all the property back on the market at 2% rates and a low housing market!!

No fucking way! This is their time. The real crash is is now on the horizon and people can now see a depression and inflation for themselves if they wake up!.

These bankster scum bags as usual manipulating the system for their own benefits.

No job market.
No Full TIME Jobs!
Decreased Wages!
No Benefits.
No Pension
No Health.

For every full time position that retires we create 2 part time jobs.
Millions and millions of graduates with no jobs and trillions in debt.

It's all FAKE!

But the fake dow is up, interest rate are up and the govt. is selling a recovery.

BULLSHIT!

puhim says

Where is all that money going to go?

same place it went in 2008 and 2009... poof.. just like that..

I wish rates would skyrocket to 20% and crash the market so those dumb Chindians lose their money and wise up. Stupid people are inflating the bubble again.

SJ says

I wish rates would skyrocket to 20% and crash the market so those dumb Chindians lose their money and wise up. Stupid people are inflating the bubble again.

You gotta love blatant racists. You and Captain Shuddup would get along just fine.

what killed the 1970s inflation was killing the 1970s wage inflation

http://research.stlouisfed.org/fred2/graph/?g=kyZ

blue is wage inflation, red is price inflation

Plus there was the gas price shock when Iran went kablooey

http://research.stlouisfed.org/fred2/graph/?g=kz0

(green is YOY gas price)

" It's a lie and a fraud that RE prices move inversely with rates. People who think a 1% increase in the 30-year mortgage rate will bring this market down are nuts."

ceteris paribus!

in the past rates rose with wages as the Fed tried to slow down expansions.

http://research.stlouisfed.org/fred2/graph/?g=kz1

blue is inverse unemployment (up is tighter labor market)

red is fed rates

As the 1960s job market tightened, Fed raised rates.

1970s, same thing, twice

1980s, 90s same thing

but something broke ca. 2000, in the post-dotcom "jobless" recovery, labor market was still as bad as the 1980s and 1990s recessions.

Now there's immense slack in the job market but mortgage rates jumped regardless.

Granted, jobless people don't buy homes, not after all the suicide lending innovations went away in 2008.

It's not just a 1% increase in rates, it's 100 basis points, a 20% YOY rise:

http://research.stlouisfed.org/fred2/graph/?g=kz4

reversing a 6-year tailwind for valuations

I can't wait for interest rates to rise to 50%. I want to see the expression on you indentured worthless peasants' faces when that happens.

http://patrick.net/?p=653488&c=726674#comment-726674

"All I did was prove median numbers are absurd and should never be used"

http://patrick.net/?p=653488&c=726825#comment-726825

"Median is a horrible metric in which to report market prices. I thought I proved it with the Census report, but apparently some people still don't understand."

(LOL - apparently yourself included)

robertoaribas says

prices WERE NOT better in 2012, and the selection sucked...and you could refinance your 2010 interest rate...

See, Sakman? Your gods are not on your side.

Risky Adjustable-Rate Mortgages Are Starting to Make a Big Comeback

http://www.dailyfinance.com/on/adjustable-rate-mortgages-are-back-still-risky/

"The dramatic rise in interest rates that has occurred over the past two months has had a big impact on the mortgage-loan market. Rates on standard 30-year mortgages have gone from below 3.5 percent as recently as late April to well above 4.5 percent currently, according to Bankrate, significantly increasing the monthly payments that new homebuyers will pay and making it harder to qualify for mortgage loans"