“I have seen debt ratios as high as 70 percent or 80 percent. But somehow these people have found a way to pay their housing debt and keep their credit score high.”
“[Few people will argue that consumers haven't benefited from these changes.] Keep in mind that 20 years ago you couldn't buy a house unless you had a 20 percent down payment, ... You had three choices of loans, adjustable, 15-year or 30-year.”
“People who calculated what they could afford when rates were 5.25 percent have realized their mortgage payments are going to be a lot higher now that rates have gone up, so they're going for interest-only loans.”
“Clearly these loans aren't for everyone. Unless you've been disciplined about saving the difference you're setting yourself up for sticker shock at the end of five years.”
“From a fixed-income point of view, which I'm looking at, it's a little bit disappointing. We have seen the bottom on longer-term rates; everybody is assuming this may be the end of this party.”
“There seems to be a sense of urgency, especially among first-time buyers. We're seeing people in their 20s and 30s who have the 'I need to buy a home now' attitude.”
“[With the report now out, rates could come up even more.] Most lenders will increase rates by a quarter to three-eighths of a percent today, ... Remember, rates move up of a lot faster than they come down.”
