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Well mortgage rates on the rise spurred by the anticipation of the end of the Fed's bond buying program many feared the spike in rates will.
The housing recovery.
Get called good chief economist at Trulia says hey just relax he's smiling right now this -- -- -- case.
Why do you say relax and -- we've had many people say that this is a potential problem.
Loan rates have started to rise they've -- most of -- point in the past month or so that's a big increase throughout what we've -- but rates are still very low by historical standards.
And we would do the whole mouth about how much it cost to buy vs ranked.
Take into account how low prices still are relative to rents it means that rates would still a long way to rise before buying gets more expensive and.
He knows what for 10% are some that are interested at the right about 10% right now try to make it cheaper to -- -- to exactly given where prices and rents are right now.
-- NAFTA we have to rise to ten and a half percent a level we haven't seen since 1990.
Before it would become cheaper to rent than to buy a -- -- like 14% of something in the eighties that's right nobody in my generation understands why -- parents remember this young people expect rates to be this low forever young people may be in for a rude surprise when they -- when they get around to buying.
Right -- -- us back on -- screen but we're also saying.
-- the average thirty year fixed rate ticked up and so.
I guess the right thing calling the spring money and as saying that for months but we are sing a little bit of arise especially the -- for a three point 95 right now.
And that you're at three point 96.
Down in the southeast.
Which might be a problem for the Florida market just because we've finally seen that excess inventory cleared out of there.
Are you worried that it in these brits -- much higher that we're gonna see that kind of you know problem for certain parts of the country the biggest.
Fact we're gonna see is on refinancing.
How refinancing is a purely financial decision.
There's not a lot of emotional that you don't think about moving for new job -- personal reasons it's a purely financial decision with -- refinancing drop off pretty sharply.
As rates start to rise -- people who haven't taken advantage of low rates to refinance.
Might now be kicking themselves.
But the decision to buy.
Depends not only on where rates are but how much -- saved for down payment how confident you are in the economy.
And rates tend to rise when the economy's doing better.
Do -- still other things go hand in hand with rising rates.
Including more relaxing the power that's the big debate right now when it comes to housing in the fat is with -- -- coming out and -- that they're gonna start.
Pulling away -- you know in the whatever the cocaine whenever you wanna call Robert 10 1000000 jokes this morning about what we're calling that signals.
And it did when they -- to pull away he's asked to back away that it's significant spike and Nantucket 5% 6%.
And we weren't -- -- just you know two years ago there wasn't that long ago that we had interest rates sitting in that in that area.
Ready interest rates get back up to 6% say they'll be parts of the country where it no longer make sense to buy.
California part of New York most expensive parts of the country both -- -- tip in favor of renting if we got to six or 7% but for most of the country.
Prices are still so low relative to rents but the math doesn't flip until -- at much higher.
Yeah I had someone come on the show and argue last week that that the people that are still buying right now are not that low income buyer and then a -- -- -- way isn't hurt them there's no get a mortgage payment.
Herself yet right now the increasing rates has only raised -- if he was not sixty bucks a month -- -- again thanks -- extent I Dennis.
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