At least, that’s this writer’s opinion:
So, the issue of the day may not be mortgage rates but other more life threatening matters such as over-supply, too much investor speculation, relaxed lending requirements, and my personal favorite, overly-optimistic expectations for rates of return on real estate investing.
… We need to stop blaming the Feds, because so far their actions have caused us little pain, relatively speaking.
That might be true. I’ve been of the mind that it IS as simple as all that – that higher interest rates have been driving the slowdown. I think I was wrong. Or, at least, making it too simple.
Obviously, prices reached the “saturation point”, or whatever you want to call it – they continued to rise until they couldn’t rise anymore, because no one could afford to buy.
Also, less obvious, there are only so many people who are EVER going to buy a home, and there are only so many people who are EVER going to move from one home to another – I mean, my parents lived in the same house for 29 years. Not everyone moves every four years, much as I’d like them to.
Complete article: [Solid Masonry] Rating The Rates And Other Factors: Did We Stub Our Toe Or Is The Cause Of Our Pain More Threatening? – By John Philip Mason