QUOTE (JDRInvestments @ Nov 1 2009, 10:21 AM) This is one area I point out to people to whom I speak daily . It is obvious the low interest rates have caused a `false recovery` in the housing market and in my mind it when these mortgages come due in 5 years and people realize they cannot afford the payments at 5 or 6% interest, there will be an influx of properties listed for sale with very motivated vendors. This could have an impact on how we as sophisticated investors buy up these properties...maybe assuming mortgages should the numbers work.
Just a thought.
Mortgage rates have been very low for well over 5 years, more like 10...at what point will people stop asking "what happens when your rate goes up?" It is quite apparent that we are in a low interest rate phase, it is not a short lived trend, and while eventually rates will rise I do no see any reason for anyone to be very concerned. The entire global economy is in the same position, and there is no reason to think that rates are going to rise more than marginally any time soon. We are simply living in a period of lower than usual (almost ever) interest rates. I am not in finance or anything, this is just my opinion, but would seem to make sense.