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The trend in mortgage rate is clearly up – what happens to your home price – how can you project your equity in your home?
Sam Adelton
Jun. 17, 2007
The mortgage is skyrocketing and will continue to do so in the next several weeks. The lon bond yield went up more than 15% over the last several months creating the biggest risk for residential real estate.
The home prices can plummet another twenty to thirty percent before the end of the year as many homebuyers are thrown out of the market by the rising mortgage rate.
The homeowners are now helpless as they see their biggest asset collars in price. The real estate price collapse has just started. It will take no less than fifteen years before a bull market returns. The capacity utilization for the home building industry is hovering at 50% - it is outright bearish.
Some people are still going to own new home and many of the same people go bankrupt over the next several years. The lumber price trends show a recovery in housing price. But that recovery can be really short lived.
How can you project your equity in your home?
First do not panic. If you plan to live long term in your dwelling, you have nothing to lose. Pay off the mortgage as fast as you can. Download all your investment properties and refrain from owning any new ones tile prices plummet at least 50% from what it is today.
Lowe the real estate taxes and use the saving to pay down some more equity. Make sure you have cost effective not real good former owners insurance.
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