Bad News, Bad News…
“Come to me where I sleep.” That’s our bow to Fairport convention fans, but it’s an appropriate title, given that the Sacramento Bee recently ran an article based on PMI predictions of doom and gloom for the Sacramento market. PMI is an insurance company offering (as my may have guessed), PMI, or Principle Mortgage Insurance, so if the market goes south they in pay more claims — at least in principle (sorry, couldn’t resist).
As usual, I’m agnostic on the issue of exactly where the market will end up. It’s not that I begrudge my neighbors in the blogosphere their alleged CrystalBall-o-Vision. I just don’t care to join them in that illusion, at least not systematically.
The other distasteful tidbit in the news was that the Fed just hiked the federal funds rate for the seventeenth time in a row.
There was a debate here some time ago wherein I took the position that interest would rise faster than prices fall. With the thirty year fixed now at an average of 6.78 percent with half a point — can you say, “over seven” — I stand by my remarks then.
At the same time, I do suppose we’ll start seeing year on year depreciation in the next batch of “the numbers”, or soon. I believe that prices would drop more slowly, I don’t think they won’t drop at all.
Meantime, those who want or need to move will do so, as they always do.
