10-27-2004, 08:10 PM
1987: stock market crashed. Economy began to slow. Fed lowers interest rates. People re-finance, take equity out of their houses, keep the economy afloat.
1991: Housing market begins dramatic correction as interest rates are forced to rise since they can go no lower. Causes the overall net cost of a house to increase, putting pressure on housing prices. People want to lock in a low rate, so they buy at admitedly inflated prices, and eventually watch the value of their house plummet.
2000: stock market crashed. Economy began to slow. Fed lowers interest rates. People re-finance, take equity out of their houses, keep the economy afloat.
2004: Arpi and Hoon buy houses
1991: Housing market begins dramatic correction as interest rates are forced to rise since they can go no lower. Causes the overall net cost of a house to increase, putting pressure on housing prices. People want to lock in a low rate, so they buy at admitedly inflated prices, and eventually watch the value of their house plummet.
2000: stock market crashed. Economy began to slow. Fed lowers interest rates. People re-finance, take equity out of their houses, keep the economy afloat.
2004: Arpi and Hoon buy houses