Comments on: Interest Rates Rising – Mortgage Activity Slows Down 16 Percent http://www.therealestatebloggers.com/2009/06/17/interest-rates-rising-mortgage-activity-slows-down-16-percent/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Portland Real Estate http://www.therealestatebloggers.com/2009/06/17/interest-rates-rising-mortgage-activity-slows-down-16-percent/comment-page-1/#comment-387554 Portland Real Estate Wed, 17 Jun 2009 19:37:24 +0000 http://www.therealestatebloggers.com/2009/06/17/interest-rates-rising-mortgage-activity-slows-down-16-percent/#comment-387554 It had to happen at some point, I would like to point out though that even though the rates are rising they are still at very very low levels and that is going to keep the market going. Anyone who is imagining a comeback of the market as something similar to 2005, you are in for a surprise. Those imaginary numbers are never going to inflate to those levels again, as it was completely unsustainable as we see now. It had to happen at some point, I would like to point out though that even though the rates are rising they are still at very very low levels and that is going to keep the market going. Anyone who is imagining a comeback of the market as something similar to 2005, you are in for a surprise. Those imaginary numbers are never going to inflate to those levels again, as it was completely unsustainable as we see now.

]]> By: Kirk Kinder http://www.therealestatebloggers.com/2009/06/17/interest-rates-rising-mortgage-activity-slows-down-16-percent/comment-page-1/#comment-387465 Kirk Kinder Wed, 17 Jun 2009 14:21:04 +0000 http://www.therealestatebloggers.com/2009/06/17/interest-rates-rising-mortgage-activity-slows-down-16-percent/#comment-387465 Did you really think that government manipulation of rates would work? The government has tried price fixing before and it works for a short while, but then it makes things worse in the end. It will again. By printing money to purchase MBS, the Fed is scaring investors from Treasuries. As they print more and more, it takes more investors away or at least the investors demand a higher interest rate. Once this last bubble pops - Treasuries - the government will be in a position where it can't help. It won't be able to do any stimulus because the extra spending and borrowing will drive rates higher, and any printing of money by the Fed will have the same effect. Did you really think that government manipulation of rates would work? The government has tried price fixing before and it works for a short while, but then it makes things worse in the end. It will again. By printing money to purchase MBS, the Fed is scaring investors from Treasuries. As they print more and more, it takes more investors away or at least the investors demand a higher interest rate.

Once this last bubble pops – Treasuries – the government will be in a position where it can’t help. It won’t be able to do any stimulus because the extra spending and borrowing will drive rates higher, and any printing of money by the Fed will have the same effect.

]]>