Today, there is an increased use of HAMP/HARP, etc programs, as well as seniors using reverse mortgages to buy both primary residences, as well as investment properties. So, apples to apples is a bit more complicated.
|In addition, it is a given that median income has recently declined for the first time in the post-war era. The low mortgage rates probably mask a 'normal' real estate mortgage/purchase/qual... scenario-but it's anyone's guess as to how higher mortgage rates can be absorbed in a world confronted with higher property taxes, higher utility costs, insurance, etc. (given, as indicated, the inescapable issue of declining median income).
Yes, a reasonable bounce was anticipated. But what run rate is sustainable, and under what set of interest rate assumptions?
Could it be that the folks having the means to buy a new house are taking advantage of low rates? There is pent-up demand in that group. But, as that set is played out-what next?
I don't have a clue.
So, in the housing market today, I know for sure is that the game has changed in a major way. If you've owned real estate from the late 1960's forward-you have to know that the world shifted in 2007.
It's not the same anymore-not even close.
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