Prices to Skyrocket if Rates Stay Low for Two Years

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.

Source: http://www.linkedin.com/today/post/article/20130314220556-3073844-prices-to-skyrocket-if-rates-stay-low-rates-for-2-years

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