Are Low Interest Rates Here Forever?

[Shane Deubell]

Are Low Interest Rates Here Forever?

Every year i say well if i am ever going to buy a dream house better do it now while we have these super low rates. Then the next year comes and the next etc, so i just keep putting it off. But some day these low rates have to end, right?

Yesterday the FED stated for "foreseeable future"...

Afraid one day they will sky rocket and then miss my opportunity.

 

[Ken Snow]

The other part of the equation is Home values, they have been climbing rapidly after the big drop (at least in metro detroit). I was almost 40% udner water 3 years ago, but this winter was able to refi with plenty of equity and got 2.75%. I am still not quite up to original purchase value but should be by next year- which will only increase my taxes as I am not going anywhere for years.

 

[Steve Toburen]

I am still not quite up to original purchase value but should be by next year- which will only increase my taxes as I am not going anywhere for years.

Ain't that the truth, Ken? Despite the drop in real estate you have not "lost money" unless you sell! Otherwise just enjoy it.

Steve

PS Shane, remember the other word in your phrase? "Dream". A personal residence is much more than an investment. You will likely spend more time and find more sheer pleasure in your "dream house" than in any other possession. So why are you putting it off? (I'm NOT advocating getting "over-extended" here.) As I always say, "A year is a terrible thing to waste."

 

[Desk Jockey]

I lost so much on my home I hate to admit it. While it has remained steady the last couple of years I don't ever think I'll get back all of my investment.

BUT I do love my home, it's my sanctuary and while it probably wasn't the best time to build, I'm still glad for what I have.

If I'm not outside working the the yard, I'm in the basement sucking up all the cold air watching movies.

 

[ruff]

As long as helicopter Ben is the Fed, the answer is: YES.

Now, how will all this money printing from thin air end?

Ah, that's a great question. Never been done before on the scale it is being done today. Not only in the US but practically in all large economies of the world. Total monetary manipulations.

I don't think Ben or anybody else have a clue what results it will lead to. Pretty scary.

 

[Shane Deubell]

Buffalo never seen the bubble or the bust, we live in our own little world here, kinda off the grid.

Housing is pretty cheap here but property taxes are high, really dream home me personally is just a nice backyard set up with inground pool, brick grill, pavers, benches the whole racket ...
Not that much money really.

 

[Beeks]

I

If I'm not outside working the the yard, I'm in the basement sucking up all the cold air watching movies.

aka posting on here

 

[Jimmy L]

I'm building a smaller home and the rates have gone up.
Experts say that they might stay around the 5-6 percent interest rate.

Hell one my friends said he bought his first house and the rate was 10.5 percent many years ago!

 

[Mikey P]

How small Jimmy?


my current mcmansion is 3300 feet (2 kids and live in Granny at the time)

My retirement home will be around 1800 with a barn.

 

[FB7777]

Complicated topic , considering the myriad of mortgage products out there

For the sake of discussion, my guess is that 30 year fixed rates will stay below 6% until at least 2015, historically that is still crazy low

Personally, I'd like to see rates go higher, much higher actually. CD rates are terrible

 

[Jimmy L]

Cuurent mobile home stands at 4,000 sq ft including storage areas.

Downsizing to a 2,000 sqft home.

Only one kid at home now.

Hope to get ahead of the OBAMA CARE tax next year.
Reduced heating/electric bills, no more snow removal,grass mowing and painting.