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Yet more indication of frothy US housing market - Life is strange... — LiveJournal

Jan. 19th, 2006

02:07 pm - Yet more indication of frothy US housing market

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Here's the headline:

If you want to read the whole story, it's here

You know I've been talking about this for a while....

Cheers! generalist

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Current Music: keyboard clacking


[User Picture]
Date:January 19th, 2006 11:13 pm (UTC)
So long as the Bay Area remains a popular place to live, the market will not drop. The main thing that will scare people off will be a big earthquake.
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[User Picture]
Date:January 20th, 2006 06:09 am (UTC)
And what prevents all those 5/1 ARM people from getting another 5/1 ARM at the prevailing rate when the adjustments kick in? The bet, of course, is that rates will continue to go up when you do that.

This is precisely what my accountant recommended, instead of a fixed rate mortgage, because the ARMs always have lower rates at any given moment in time, and so if you just keep refi-ing with ARMs, you win on total loan cost.
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