Monday, October 3, 2011

According to The Atlantic the renting to buying ratio is near it's equilibrium. Thanks to the Federal Reserve,we'll likely see the lowest mortgage interest rates in U.S. history proving a huge incentive to buy in the near future. Articles such as this will be important to take into account after I graduate and begin looking for a job and potentially a new home. Although I am sure I can find a nice home at an affordable price the idea of being locked into a mortgage scares me away. I will probably end up renting my next home....

1 comment:

  1. I agree with the comment on the website. "An average is not an equilibrium.. The still large inventories of unsold houses suggests that we are nowhere near equilibrium prices." At the same time, what would be an equilibrium? At this point, I believe that it is not possible to match the demand price of houses considering that millions of people would like to get a nice house without carrying an overwhelming amount of debt... To match this expectation, the mortgage loans should further decrease their rate? Or should people just modify their expectations?