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How to Predict a Crash

Many Mortgage analysts are predicting we are due for another mortgage bubble. What are good indicators in the market that rates will see another huge hike? by ilial951 from Patterson, Louisiana. Oct 30th 2018 Reply

Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

If we could predict it, we would have all retired billionaires a long time ago.

Oct 31st 2018
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

No.. you are wrong.. it wont be a "Mortgage Bubble".. (maybe you meant "housing" bubble?) the "housing" crash was due to toxic mortgages.. but those loan's do not exist any more.. in fact, underwriting guidelines got so strict that only the best could get financing.. that's starting to taper off now, but none the less if the "Housing Market" crashes.. it wont be because of mortgages.. the increase in home values has been stable, steady and consistent.. and in a healthy market, there are up's and downs.. but a crash happens when something major happens.. Interest rates jumping up 3% in a few months would definitely create havoc, you would see things slow down quickly.. but probably not a crash.. If we went to war,, that could be bad.. if the US dollar collapses, it would be catastrophic.. many things could cause a housing or economic crash.. and no one has a crystal ball to know if and when it will happen.. As far as another huge rate hike? Since President Trump got elected, the markets have been going strong.. and typically, during these strong markets, inflation can get out of control.. so the Federal Reserve will step in and raise the "intraday rates" given to financial institutions.. this rate hike is designed to slow the growth and keep inflation under control... so as the markers continue to blaze upward, expect rates to continue to rise.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Nov 7th 2018
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