Interesting article in the NY times. What I found so concerning from an investing/bubble perspective was the section about how people are not trading up any longer because higher interest rates mean a larger payment even if the homeowner has more equity...
With two children and a third due in January, the Wiedels would like to trade up. With the rise in home prices some renovations, the house they bought for $350,000 could be worth more than $500,000. But the family borrowed at about 3.5 percent three years ago. Today, they would pay closer to 5 percent. “Even if we just saw houses at the same price, we’d have to pay more” every month, he said.
Submitted September 30, 2018 at 06:03PM by warrenfgerald https://ift.tt/2xNJ081
