Some thoughts on the US housing market. As the summer market fades both lenders and builders are discounting interest rates, usually for an abbreviated time frame to keep business moving. There's more inventory than a year ago but not that much. However loan interest rates continue to move up. It's now 7.6% according to bankrate.com. I think that's a bit high for a well qualified buyer but it's certainly over 7%. Housing prices are moderating in the hottest markets but flat in most others as inventory remains low. I think it will be a tough winter for housing. Not 2008 housing crash tough but less than excellent. We keep looking here in Annapolis but we're not buying as it feels too early and who can complain about making more than 5% to wait. As some will know, 5% bond interest is the tipping point. Stock market investing is less interesting, home mortgages 2% higher are less interesting and, in general, saving instead of spending is more interesting.
Rule #1, Don't lose money. Rule #2, read rule #1. - WB.
