Thread: Investing 102
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Old 03-08-2015, 12:22 AM
68Cuda 68Cuda is offline
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Quote:
Originally Posted by GregWeld View Post
Michael --- I think you are missing the point we were discussing.
No - I get it, just not as eloquent as some in expressing myself. Just remarking on where rates were and how different it is now.

Quote:
Originally Posted by GregWeld View Post
It takes the "move up" buyer to help a market along.... So now let's say the move up guy has a 3.5% mortgage.... His house is too small - he now has two kids -- his value is up... so he begins to shop... All the other houses in his area are also up in value... but now his new mortgage is going to be 5.25% and he needs to borrow 100K more to do the move up. Is this family mentally ready for such a large increase in their mortgage costs. So do they repulse and just stay in their current house...
It will be a large barrier - that is for sure, the monthly budget is the driver.
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