Wednesday, September 20, 2017
Bloomberg: Fed to Shrink Assets Next Month, Boost Rates by Year End
What does this imply for investors? Raising rates mean raising mortgage rates, too. Homeowners with fixed rate mortgages will be OK, but those with variable rate mortgages, and new home buyers, will not be OK. The only reason people of ordinary means can afford to buy a home now is because of the very low interest rates. There will be fewer home buyers and some of the variable raters will have to sell. So I foresee an end to the real estate boom currently going on.
Posted by RichardG at 2:11 PM
Sunday, September 17, 2017
Why do people still buy homes in Florida, esp. southern Florida? The danger from hurricanes is obvious, and then there's global warming. Florida is only a few feet above sea level. If you deny the existence of climate change, then, sure, buy Florida. It's scary to think that there are so many who believe the seas won't rise. My prediction, and I'm not alone in this, is that Florida real estate values will collapse completely within 30 years.
Posted by RichardG at 3:15 PM