Re: off topic: well, another rumor, about house market shakeout...

["W. Parks" <parks@xxxxxxxxxxxxxx>]

I've been watching the 15yr jumbo loan rates to do a refi. Countrywide CEO
was on the tube the other day saying rates would continue to come down over
the next couple of months. A Bear Sterns guy was on one of the Sunday
morning talk shows and he too felt mortgage rates would continue to fall.
However if one were to look at the 30yr bonds and 10 yr notes, it would
appear that maybe the top was in place in March. Other than the bond/note
markets, are there other, better markets/indices to follow the direction of
mortgage rates?

William



> this time the rumor is that US house market
> is nearing a shakeout.
> one shake out down, another one to go.
> my RE sources are telling me that the luxury housing
> market is grossly overheated all around the country
> and is about to correct, especially higher prices
> ( expensive ) housing. the rational is  that the
> expensive homes are speculative investment
> and as the owners
> will try to take profits towards the end of the trend
> the crash is imminent.
>
> i kinda feel it myself and you might start hearing
> it on CNBC more often.
> could anyone with RE connections please confirm
> that you there is talk going on around...
>
> if that's the case then selling the overprice house now
> and buying back similar house later might be
> the best buy of the decade???
>
> certainly sounds and feels like that buying a house now
> is tempting with low interest rates but what if it
> collapses and rate goes even lower???
> bilo.
> ps. luxury housing ( whateverfront ) went up to 100-150 %
> in the past 2-3 years... houses that were worth
> 1-2 mil 2-3 years ago are now up to 5-6 mil.
> waterfront luxury condos that were worth 1/4 mil
> then are now more than 1/2 to a mil...
> although those are price setters but feels like
> reversion to the mean is a must here as those
> investment have to be turned into hard cash.
>