Well, not really, but please read on.
Rising fixed and ARM mortgage rates are expected to slow the housing market [SFGate.com] The nearly always pessimistic UCLA Anderson Forecast, confirms this line of thinking but goes a step further, by saying that the rising rates are not the only factor in the slowdown, saying:
Rising interest rates “are just one tiny little (impact), like a guy standing in the middle of a hurricane throwing a bucket of water.”
Actually, I strongly disagree. Rising mortgage rates are the catalyst for other problems. Thats were the problems started. Low rates fueled optimism that caused many to spend beyond their means with the understanding that things can only get better. The wealth effect of housing was the elixor.
Mortgage rates climbed this week with 30-year fixed-rate mortgages hitting their highest point in almost four years, an increase that could dampen home sales and refinancing. This illustrates the compounded problem facing many homeowners. From my favorite personal finance blog: My Open Wallet, she espouses upon her new favorite quote
People who are living beyond their means are going to have a harder time making ends meet than ever in history.
She found quote by Rick Sharga of RealtyTrac Inc., who is a refrequent commentor in Matrix, in the article by one of my favorite New York Times writers Jennifer Steinhauer: Statistics Aside, Many Feel Pinch of Daily Costs [NYT]
I just had to laugh and see it as a sign of the times. To me, anyway, it would seem that “living beyond their means” and “making ends meet” are mutually exclusive things by definition. Therefore, for people who are living beyond their means, making ends meet is impossible, not just something that may be more or less difficult depending on economic conditions.
[There’s a certain element of six degrees of Kevin Bacon going on here. -ed]