Relief Coming?

http://www.newsday.com/business/ny-bzhomes1014,0,7074256.story?coll=ny-top-headlines

An article in Newsday entitled "LI home sales cooling off"

Interesting read on the rise of interest rates, and the amount of unsold homes rising. maybe relief is coming, but with interest rates rising, is it really such good news?

"In Queens and Long Island, the number of unsold homes in September rose 7.8 percent from August, and 36 percent from September of last year. "

"Freddie Mac, the second largest purchaser of U.S. mortgages, reported yesterday that the average rate for 30-year fixed-rate mortgage rose to 6.03 percent this week."

Re: Relief Coming?

Maybe.... but interest rates are spiking bigtime. They went up again today.

The problem though is... prices are not going to go down enough to offset the major interest rate hike that we have seen in the last two weeks.

House prices that go down... will be a very slow and gradual process. Whereas... interest rates can spike up at any given notice.

I feel bad for anyone buying now... and financing now. This is probably one of the worst times to be buying. House prices are still very high... but interest rates are almost at their 1yr high mark.