Relevant:
- Foreclosure amnesia -- California distressed inventory still larger than non-distressed properties.
- Freddie Mortgage Rates Touch 2009 High
- How low will mortgage rates go?
- Where did all the real estate inventory go? -- Orange County inventory down 29 percent over the last year and sales are up 25 percent. What is causing the current market dynamic in Orange County?
- What Will these Mortgage Rates Do to Housing Bubble 2?
2012-07-30 — doctorhousingbubble.com
People have a hard time wrapping their mind on how much leverage the current low mortgage rate has injected into the market. For example, in 2007 the 30-year fixed mortgage was at 6.7 percent and today it is now at 3.6 percent (a drop of 45%). In California, it means someone can take on a $500,000 mortgage with the same carrying costs of a $350,000 mortgage only five years ago. These artificially low rates are purposely pushing home prices higher when many households can only carry lower priced homes
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