Prices will fall by 50% in four years

chucky

brit1234 wrote: »

Everyone knows interest rates won't stay at 0.5%. Any one buyer on the basis of this affordability is in for a shock. Low interest rates just delay the problem not solve it. The housing market bubble has burst and the market will naturally return back to normal.

mortgage rates are not 0.5%. any more nonsense you'd like to tell us

50% drops by Christmas 2009 :rotfl::rotfl::rotfl:

Graham_Devon

chucky wrote: »

mortgage rates are not 0.5%. any more nonsense you'd like to tell us

50% drops by Christmas 2009 :rotfl::rotfl::rotfl:

Did he say mortgage rates? Just I can't see that he did tell you that?

I'm actually gaining more respect for Brit. Made a prediction, got it wrong, but has left it in his sig instead of hiding away from it. Sure, it allows for loads of these kind of posts, but I do have more respect for someone who will admit they were wrong and leave the evidence up.

chucky

Graham_Devon wrote: »

Did he say mortgage rates? Just I can't see that he did tell you that?

you just don't think before you type do you or do you deliberatly not understand things...

brit1234 wrote: »

Everyone knows interest rates won't stay at 0.5%. Any one buyer on the basis of this affordability is in for a shock.

by implying buyers are basing 0.5% on their affordability when buying a house - yes it must be mortgage rates... do you get it yet or are you going to pretend you don't understand to cause an argument?

LittleMissAspie

As the interest rate goes up, surely mortgage rates will too?

damanpunk

I think what chucky is getting at is that most people at the moment are likely to be on fixed rate mortgages much higher than 0.5% so where is this carnage going to come from when rates go up?

Graham_Devon

It's nothing about arguments. Again, I'm not the one taking apost completelty out of all relevance to have a jab. I'm sure if the poster meant mortgage rates, they would have said mortgage rates. If they meant interest rates, they would have said interest rates.

It's not that difficult to understand what they are saying, so long as your not looking to jump on whatever they say to try and show them up. Seriously.

Harry_Powell

LittleMissAspie wrote: »

As the interest rate goes up, surely mortgage rates will too?

Unless they're fixed rate.

chucky

Harry_Powell wrote: »

Unless they're fixed rate.

damanpunk wrote: »

I think what chucky is getting at is that most people at the moment are likely to be on fixed rate mortgages much higher than 0.5% so where is this carnage going to come from when rates go up?

which about 70% of people have been doing since the turn of the year.

a lot of people seem to be sitting on Hope Mountain a bit deluded at the moment...

Really2

LittleMissAspie wrote: »

As the interest rate goes up, surely mortgage rates will too?

Not for sure. The margin on loans at the moment is very high usually SVR is less than 2% above BOE base. Many are now higher than that.

So as banks get their acts together the gap should decrease again.
BOe base could be 5% and SVR could be 6% in 10 years time who knows.

Main point at the moment the BOE are going to come out today and say they expect inflation to be below target for the next 2 years.

So anyone thinking rates are going to shoot up are going to be disappointed by the look of it.

skap7309

brit1234 wrote: »

Everyone knows interest rates won't stay at 0.5%. Any one buyer on the basis of this affordability is in for a shock. Low interest rates just delay the problem not solve it. The housing market bubble has burst and the market will naturally return back to normal.

Bang on the money. I love it how a few months of price rises have enabled the bulls to drag this thread from the depths to spout how wrong it is, despite it being 14 months into the 48 predicted.

Whilst i am certainly not supporting 50% drops, i am by no means writing it off. The government have surpassed themselves by keeping prices artificially high but it is just that - artificial. The above in bold is going to play a huge factor over the years and i can see this period as a break before it continues.