Prices to Skyrocket if Rates Stay Low for Two YearsPosted: March 18, 2013 | |
by John Burns
I was on Bloomberg TV this morning and sent (I hope) a wake-up call to the Fed. If mortgage rates stay at 3.5% for several years, I believe home prices will skyrocket. Potential home buyers can purchase a 34% more expensive home today than they could at the end of 2008. With supply now dwindling, it is a seller’s market, and price appreciation is only limited by what people can afford to pay every month. Here is a link to the interview as well as 2 charts illustrating my point.