The days of freakishly cheap loans are probably gone for good, and rates might even go up some more before they fall again.
I bought an apartment last year and if I were buying today, I wouldn't be able to afford it. The increase in mortgage rates would mean $1,000 more a month than I am paying now. It may be the only time in my life I (inadvertently) timed the market right.
Now, my friends who want to buy are waiting and hoping for those heady 2.7% 30-year fixed mortgage rate days to return. Some are betting they will and taking out an adjustable rate mortgage.
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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