Irvine Housing Blog

[screen name]

I was going to post this on the blog site but I don't know if they would leave it up.  I read irvine housing blog a long time. Did not Irvine Renter used to say it is dumb to buy at the bottom of an interest rate cycle? Now he praise the virtue of buying at low rates. He points out rental parity. What about previous lessons. What about saying it was foolish at this part of a cycle. Does not any body else see the same thing. I got busy at work and had to take break from reading for a while. trying to understand what is going on.

 

[irvinehomeowner]

To be fair, he has always used rental parity as a buy point.

And although he has said that it's easier to refi into a lower rate and that prices fall as rates rise (you can't change your buy price), the rates are so low and prices have dropped low enough that if you plan to buy to stay for an extended period... it is okay.

And your comment won't get deleted, I have commented about low rates many times on his blog... more particularly that even if they do rise, prices will not drop proportionately. Usually they are ignored... but I base that on the fact that he can't really argue against it.