Here is a good reason why houses are not selling like they were

DH and I were talking about this last night. We're glad we bought when we did and were able to lock in a good rate for the next 10 years (DH's plan is to get the mortgage paid off before then) and I keep reminding him how expensive kids are!!!

'With a $200,000 loan adjusting upward from 4 percent to 6 percent, the monthly bill would increase to about $1,200, from $955.'

That corresponds to $490 increase for a 400k mortgage

e.t.a. The quote is about ARMs.

I hope rates drop soon- even though my DH deals with people are paying higher then that for no reason

( watch out for companies like Ameriquest- even though they are out of business- they trick people into really bad deals- my DH had seen people with excellent credit paying as high as 9%)

he fixes loans like that for a living-