The existing real estate prices, according to Dodge “look pretty high by any conventional measure.” He believes that the “likelihood of house prices falling a bit over the next few years is probably somewhat greater than that they would rise over the next few years. Dodge also predicts the low mortgage rates will increase, but he says it would not be very smart to raise them just to calm housing.  Regarding insurance, Dodge said that the “terms and insurance over which mortgage insurance should be given over the next little while probably should be tighter. “

 

What do you think? Is Dodge right? Yes, as the interest rates are really low, it is extremely likely those will increase indeed. But what about the other mentioned issues?