- Joined
- Aug 26, 2010
- Messages
- 380
There is a lot of press now about how we have the lowest interest rates globally in 500 years. 10 trillion dollars of central bank debt now has negative interest rates ON TEN YEAR DURATION. People are PAYING to give their money to central banks to get the same amount or less back in 3-4-5-10 years time.
5 yr mortgage rates are now 2.5 % for solid borrowers.
Rreal estate has had an unbelievable bull run of 20 years and more as the rates have dropped and prices risen as people could afford larger and larger mortgages.
What do people think will happen next as the rates start to drift up? My forecast is for a stagnation of price for 7+ years as rates slowly rise, real estate slowly gets less affordable, and inflation starts to chip away at the real value.
What other outcomes could we see here and why?
5 yr mortgage rates are now 2.5 % for solid borrowers.
Rreal estate has had an unbelievable bull run of 20 years and more as the rates have dropped and prices risen as people could afford larger and larger mortgages.
What do people think will happen next as the rates start to drift up? My forecast is for a stagnation of price for 7+ years as rates slowly rise, real estate slowly gets less affordable, and inflation starts to chip away at the real value.
What other outcomes could we see here and why?