After mortgage rates went over 6% again yesterday, the doomers will be burying the real estate market over the next few months. You can see why – rates have been dropping for a generation; for them to now go up from 3% to 6% in a few months is unprecedented for today’s buyers:
But having the majority of buyers paying over the list price (especially those paying $100,000+ over list) was unprecedented too. Those who haven’t bought a house yet must be suffering from real estate whiplash today!
Where is it going to go now?
Is there any sort of precedent to reflect on? When this blog was in its infancy, I made the now-infamous Grand Poobah of Predictions on September 16, 2006 on how I thought the market was going to unravel. It was contested by many, and Rob Dawg issued his challenge which evolved into the Coffee Bet.
If you’d like to revisit history, scroll down to the bottom here and read the comments too:
Yesterday, I told Rob that I will post my latest thoughts on Monday, and asked him to do the same – or at least critique what I had to say. It will give me a couple of days to think of all the variables – which there are several now that have never been in play before!
Come back next week with your thoughts too!