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Interests rates are rising and fast. This is having an effect on many things of course, as its intended to do. Mortgage rates are up

Interests rates are rising and fast. This is having an effect on many things of course, as its intended to do. Mortgage rates are up over 6%, potentially over 7%, from around just 3% or less at the start of the year. This means a large increase in the expected mortgage for a given home loan. It also means as I had posted with respect to Bonds that they have decreased in value- with record low rates as of just a year ago I had always said a bond of maturity beyond a year is economic insanity. In fact I just read that the UK pension fund had leveraged 4:1 in their bond purchases since rates were 2% and they needed a 10% return so now as rates have risen their are becoming insolvent. That means that they have borrowed heavily, think having $2 of your own and borrowing $8 of others' money to turn a 2% return into a 10% return (ignoring fees and interest). But now the value of those bonds are down big. Bonds in general are down around 20% this year. That would potentially mean they have lost 20% of the bond values or 100% of their own stake and left only with the debt portion, the $8 of others having lost their personal $2. They got bailed out of course So, the questions to answer here are: Do you think that home sales have increased or decreased today vs the beginning of the year and why would you expect that to be occurring. You can quite easily estimate a mortgage rate using a variety of different websites. So try find a house that looks interesting to you in the area, Western WA, and see what the difference in monthly payment would be at 3% if you closed in say February to today at 6%. Does this surprise you? What effect do you think it would have? Do you think this would affect the price

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