Yesterday I pondered the meaning of the sub prime lending "crisis". Now I read on CNNMoney that mortgage rates remain unchanged. Now, I may be naive about this, but it seems to me that markets speak much louder than the media about the true significance of events. And if the market were truly worried about risk in real estate, interest rates would rise.
So what are we to make of the stock market sell-off? The stock market is often driven by emotion and not facts (that's why it's riskier than real estate). If the interest rates for mortgages continue to remain unchanged, I would bet that this hoopla is not going to have any significant effect on real estate or stocks in the long term.
So what are we to make of the stock market sell-off? The stock market is often driven by emotion and not facts (that's why it's riskier than real estate). If the interest rates for mortgages continue to remain unchanged, I would bet that this hoopla is not going to have any significant effect on real estate or stocks in the long term.
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