Thursday, June 16, 2005

Housing bubble?

"What housing bubble?", asks Jim Jubak, as he considers mortgage rate and home price data.

Hey, with 5.1% 30-year fixed rate mortgages available here in New York City I'm refinancing right now.

No kidding, I am. That's less than I'm paying on my old adjustable. It's just amazing, short rates and inflation considered. As the Fed has raised short rates by two points over the last year, long rates have fallen by most of a point. I don't expect to live to see anything like it again.