Difference b/w Subprime lending & FHB Grant

[topcropper]

Yes some FHOG may get burnt when rates go back up again. But that's looking like a very long time away.

But aren't we having a new mini housing boom..?? [not sure if I'm serious or not].

A new housing boom would be one way to quickly see the interest rates stop dropping and start rising again.

There certainly seems to be a lot of bullishness about right now. China is starting up again, the coal prices didn't drop as much as I thought they would, and most commodities have risen a fair bit. Even the stockmarket is doing really well, and BHP is at $33 for flip sake!. Will there really be another interest rate drop under the current circumstances..??

See ya's.

 

[TasInvestor]

Will there really be another interest rate drop under the current circumstances..??

IMHO - Yes.

Business are sheding staff, First Home buyers are supporting 1/3 of the RE market (mainly because of the FHOG+Boost - Take away one of the legs of a three legged stool - what do you have? ANd will it stay up?).

Britian could be going into deflation, and there is still a lot of talk of toxic assets.
Commodity prices are still way down.