Right. So, if you're looking to buy, you wait for prices to fall & the suckers to walk on their upside down McMansions?
Unless you have cash you're not in any better position. Sure, the purchase price is lower but the savings all go to the bank in the form of interest. Your payments are the same for either price. You will also have to wait longer to enjoy some equity because interest rates will be weighing down housing prices. At 10% interest real estate prices have to increase at more than 10% just for you to break even when you sell your house.
Yes, in this scenario you can assume cash flush waiting to pounce.
If inflation hits like the 1980's your money will lose half its value in 5 years.
Of course you're in a better position. The fed will eventually have to lower rates then you refi with a smaller payment, then wait for prices to rise again because interest is lower.
Until the crash of 2008 mortgage rates of 6.5% were considered good. That means you're probably looking at rates in that range for a couple of decades after having them above 10%.
2010 was a good year for people looking to buy foreclosures.
Didn't have Trillions in free Fed Bux to Blackrock and other institutional in 2010, though.
1st time since the 70s the house prices were representative of their actual value instead of inflated.
Yeah we did.
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