08 julio 2006

Are you on the mortgage?

Oh my god!!! Have you seen the soar of interest rate? It´s frightened.

It seems it´s gonna increase until 4-4.5%.
It´s supoussed this rise is to keep the inflaction at bay, but if this is the case I´m afraid that lots of people will have to sell their houses because they will not be able to withstand such a interest rate. (And no, you can not blame on left-wing neither Zapatero)

And what it´s worst, like it or not the brick can loses its value. After a boom a plunge always follow. You can see precedents in the UK´s housing market.

The decline in borrowing costs over the past 8 years has encourage lots of families to buy unaffordable houses. An the point is that houses are more overvalued than they were at any other past time. Nowadays -if you are lucky and you can afford the monthly payment of your mortgage - you need a hyper-long term mortgage. In the old days our parents not only were able to buy a house in less than 10 years, but they were able to raise us as well.... and often only with our father´s income. So, either something is wrong or I´m not able to catch the point.

Maybe the petrols price could fall and the rise of interest rate could plunge too. Maybe we could win the lottery or even we could find a extremely-well-paid new job. The thing is that I´m afraid all these situations are againts all odds but, who knows what´s in the store for us?

1 comentario:

Zorro de Segovia dijo...

Don´t be pesimist darling. From last times the humans have become more and more imprudent. The mortgage fever is only other sign.