Scary chart

very clear presentation. presumably, the reason for the relatively recent decline in interest rates was the illusion of lack of risk. if the government ever stops intervening, it would seem like 6-8% is completely reasonable. i am under the impression that many if not all of the fha loans are assumable; if true---that throws an interesting wrinkle into all of this.

30 years of Government manipulation of the mortgage market.

only 30?

More scary charts: http://www.clearonmoney.com/dw/doku.php?id=investment:commentary:2010:03:25-the_rise_in_serious_mortgage_delinquencies_is_not_slowing

Mortgage modifications declinging and serious delinquencies rising, even with low interest rates.

What if mortgage rates go to 15%? 20%? 25%? What is the purpose of these silly hypothetical questions?

you need to look at real not nominal interest rates.

which rate does your mortgage get calculated off of ?

When the government forces investors to swallow the effects of countless mortgage modifications the result will be higher mortgage rates. No private investor will be willing to take the credit risk on any loan issued for over 70% LTV.

"Put it on 36 years. 30 yr fixed makes it obvious what has driven housing prices up for the last 30 years. Imagine what happens to housing prices if 2010 is the trough and the next 5-15 years take us back to 8-10% mortgage rates."

Agreed... pretty scary.

> you need to look at real not nominal interest rates.

"which rate does your mortgage get calculated off of ?"

Bingo.

> Mortgage modifications declinging and serious delinquencies rising, even with low interest rates

Shhh... don't tell alpo.

"What if mortgage rates go to 15%? 20%? 25%? What is the purpose of these silly hypothetical questions?"

Wow, alpo, there is ignorance, and then there is IGNORANCE. You are a big one...

Its the "silly hypotheticals" which are EXACTLY what you missed leading to you getting the housing marketing COMPLETELY wrong. This clearly shows the interrelation, and its not a big step to noting that ANY increase is not going to help.

Not to mention, these aren't hypotheticals, this is actual data.

Was it a "silly hypothetical" when folks noted that job losses will lead to housing declines?
Was it a "silly hypothetical" when folks noted that a financial crisis will lead to housing declines?

But, at least it explains why you know so little... you are scared of the facts.

That is ignorance, plain and simple.

I don't see how we avoid 7% treasuries and 9% mortgage rates in the near future. There's too much Federal debt, coupled with no reason for taking on mortgage credit risk when the Democrats insist on punishing the ultimate holders of mortgage debt.