More of the real world impact of the Biden* economy as inflation continues to batter the US consumers.
From the article -
"The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.01% from 5.94%."
Also this from the article -
"Mortgage rates jumped significantly higher this week, after the monthly inflation number came in higher than expected."
The Depends-Wearer-In-Chief Biden* OWNS all of this fiscal pain being dumped on the US citizens.
TOLERATE THE INCREASED COSTS OF HOME MORTGAGES AS THE BS INFLATION REDUCTION ACT CONTINUES TO HAMMER THE AVERAGE CITIZENS.
CONTINUE TO TAKE THE FINANCIAL PAIN, AMERICA.
LET'S GO BRANDON!
https://www.cnbc.com/2022/09/14/mortgage...rcent.html
(09-15-2022 07:47 AM)boss man Wrote: [ -> ]More of the real world impact of the Biden* economy as inflation continues to batter the US consumers.
From the article - "The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.01% from 5.94%."
Also this from the article - "Mortgage rates jumped significantly higher this week, after the monthly inflation number came in higher than expected."
The Depends-Wearer-In-Chief Biden* OWNS all of this fiscal pain being dumped on the US citizens.
TOLERATE THE INCREASED COSTS OF HOME MORTGAGES AS THE BS INFLATION REDUCTION ACT CONTINUES TO HAMMER THE AVERAGE CITIZENS.
CONTINUE TO TAKE THE FINANCIAL PAIN, AMERICA.
LET'S GO BRANDON!
https://www.cnbc.com/2022/09/14/mortgage...rcent.html
Only going up. Will be at 7% before the end of the year and will stay up for a long time.
Yeah, the days of cheap money are gone for a while. Hopefully I'll at least start seeing some interest return on my savings account.
Still an historically good interest rate.
It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
(09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
(09-15-2022 08:01 AM)b2b Wrote: [ -> ] (09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
The moment that it does they'll come right back down with the interest rates. They won't risk the property values as it would kill a ton of people's net worth.
(09-15-2022 08:01 AM)b2b Wrote: [ -> ] (09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
What will cause a crash? Seems the only thing, IMO, to bring down housing prices is more supply. Rising rates will slow the increase, or if they get really high, stop the price increases, but I don't see rates causing any kind of housing crash.
(09-15-2022 08:16 AM)VA49er Wrote: [ -> ] (09-15-2022 08:01 AM)b2b Wrote: [ -> ] (09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
What will cause a crash? Seems the only thing, IMO, to bring down housing prices is more supply. Rising rates will slow the increase, or if they get really high, stop the price increases, but I don't see rates causing any kind of housing crash.
It could happen but im still optimistic it will not crash. Certain markets will correct more than others.
The cause would most likely be the investment firms cashing out which would sharply increase supply.
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(09-15-2022 08:19 AM)maximus Wrote: [ -> ]The cause would most likely be the investment firms cashing out which would sharply increase supply.
I'm not sure that makes a significant dent... at least in SW Ohio they own rental properties that are all filled. If they sell then the demand isn't going away.
(09-15-2022 08:26 AM)mlb Wrote: [ -> ] (09-15-2022 08:19 AM)maximus Wrote: [ -> ]The cause would most likely be the investment firms cashing out which would sharply increase supply.
I'm not sure that makes a significant dent... at least in SW Ohio they own rental properties that are all filled. If they sell then the demand isn't going away.
Makes sense. Seems the only way that would impact supply is if all the units they sell are vacant.
(09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
Actually it would make private equity companies richer and they will muscle more middle class Americans out of owning a home.
When the homes eventually go bust, we shouldn't bail out these firms either. Let them feel all the pain, even if it crashes the market and stocks.
(09-15-2022 07:50 AM)VA49er Wrote: [ -> ]Still an historically good interest rate.
Recency bias begs to disagree unfortunately.
When you have an entire generation of young adults (40 and under) who have never/rarely seen rates above 5% never mind 6% - this is sticker shock for them.
I remember when rates hovered around 10% (even higher actually). Can you imagine trying to borrow $400K at 10%? $3500 per month before taxes and insurance.
YIKES
(09-15-2022 09:12 AM)Eldonabe Wrote: [ -> ] (09-15-2022 07:50 AM)VA49er Wrote: [ -> ]Still an historically good interest rate.
Recency bias begs to disagree unfortunately.
When you have an entire generation of young adults (40 and under) who have never/rarely seen rates above 5% never mind 6% - this is sticker shock for them.
I remember when rates hovered around 10% (even higher actually). Can you imagine trying to borrow $400K at 10%? $3500 per month before taxes and insurance.
YIKES
I guess perspective is everything. My first home was above 7% and that wasn't all that long ago. People got spoiled with historically low interest rates and now think 6% is astronomical. It's not, the rate are getting back to reality. Eventually, the drug has to be removed from the system.
(09-15-2022 08:16 AM)VA49er Wrote: [ -> ] (09-15-2022 08:01 AM)b2b Wrote: [ -> ] (09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
What will cause a crash? Seems the only thing, IMO, to bring down housing prices is more supply. Rising rates will slow the increase, or if they get really high, stop the price increases, but I don't see rates causing any kind of housing crash.
There never really was a shortage of housing, there was just a shortage of housing for sale. That situation is currently changing as we speak. So, at the same time interest rates drastically reduce buyer demand, the number of homes for sale is rising nationwide. Of course, the immediate state of any real estate market is a local market issue, but already in many markets it is no longer a sellers market and prices are falling.
(09-15-2022 09:33 AM)Attackcoog Wrote: [ -> ] (09-15-2022 08:16 AM)VA49er Wrote: [ -> ] (09-15-2022 08:01 AM)b2b Wrote: [ -> ] (09-15-2022 07:57 AM)b0ndsj0ns Wrote: [ -> ]It's sad that my generation is pretty much forced to hope for a housing crash so we can one day hope to be able to afford a house.
It's going to happen. It won't be long. Just be ready to jump on it when you can.
What will cause a crash? Seems the only thing, IMO, to bring down housing prices is more supply. Rising rates will slow the increase, or if they get really high, stop the price increases, but I don't see rates causing any kind of housing crash.
There never really was a shortage of housing, there was just a shortage of housing for sale. That situation is currently changing as we speak. So, at the same time interest rates drastically reduce buyer demand, the number of homes for sale is rising nationwide. Of course, the immediate state of any real estate market is local market issue, but already in many markets it is no longer a sellers market and prices are falling.
Is it time to start a NOT PLUMMETING slogan yet?
(09-15-2022 09:25 AM)VA49er Wrote: [ -> ] (09-15-2022 09:12 AM)Eldonabe Wrote: [ -> ] (09-15-2022 07:50 AM)VA49er Wrote: [ -> ]Still an historically good interest rate.
Recency bias begs to disagree unfortunately.
When you have an entire generation of young adults (40 and under) who have never/rarely seen rates above 5% never mind 6% - this is sticker shock for them.
I remember when rates hovered around 10% (even higher actually). Can you imagine trying to borrow $400K at 10%? $3500 per month before taxes and insurance.
YIKES
I guess perspective is everything. My first home was above 7% and that wasn't all that long ago. People got spoiled with historically low interest rates and now think 6% is astronomical. It's not, the rate are getting back to reality. Eventually, the drug has to be removed from the system.
The house I bought in 1991 came with a 9% mortgage. Can’t remember exactly, but when I moved again in 1999 my new mortgage I think was around 7.5% (it’s been refinanced a couple of times since then). The difference between now and then in terms of affordability is home prices were much lower back then. The reality is housing has to fit the average persons monthly budget—-right now housing affordability is near an all time low point because home prices are currently too high for the average American to afford at the current interest rate. Americans can’t control interest rates, but they can control how much they pay for a house—which is why home sales volume is currently so low. In the end, either wages must rise, rates must fall, or home pricing must correct downward (or some combination of these three factors)—-for crashing home sales volume to return to normal.
I paid 12% on my first home I purchased in 1979.
(09-15-2022 09:39 AM)Attackcoog Wrote: [ -> ] (09-15-2022 09:25 AM)VA49er Wrote: [ -> ] (09-15-2022 09:12 AM)Eldonabe Wrote: [ -> ] (09-15-2022 07:50 AM)VA49er Wrote: [ -> ]Still an historically good interest rate.
Recency bias begs to disagree unfortunately.
When you have an entire generation of young adults (40 and under) who have never/rarely seen rates above 5% never mind 6% - this is sticker shock for them.
I remember when rates hovered around 10% (even higher actually). Can you imagine trying to borrow $400K at 10%? $3500 per month before taxes and insurance.
YIKES
I guess perspective is everything. My first home was above 7% and that wasn't all that long ago. People got spoiled with historically low interest rates and now think 6% is astronomical. It's not, the rate are getting back to reality. Eventually, the drug has to be removed from the system.
The house I bought in 1991 came with a 9% mortgage. Can’t remember exactly, but when I moved again in 1999 my new mortgage I think was around 7.5% (it’s been refinanced a couple of times since then). The difference between now and then in terms of affordability is home prices were much lower back then. The reality is housing has to fit the average persons monthly budget—-right now housing affordability is near an all time low point because home prices are currently too high for the average American to afford at the current interest rate. Americans can’t control interest rates, but they can control how much they pay for a house—which is why home sales volume is currently so low. In the end, either wages must rise, rates must fall, or home pricing must correct downward (or some combination of these three factors)—-for crashing home sales volume to return to normal.
We bought our house in Feb. 1992 with a 8% mortgage. We paid that puppy off in 22 years. You are right about the home prices back then.
(09-15-2022 07:50 AM)VA49er Wrote: [ -> ]Still an historically good interest rate.
My parents bought our family home in 1969, I want to say their interest rate was somewhere close to or in double digits. I believe they refinanced during the 80's for some astronomical figure, somewhere in the mid to high teens. They experienced a financial crisis at that time which lead to the refinance so perhaps their credit rating contributed to that.
In any case we appear to be closing in on the average of a little over 8% using the last 47 years as the benchmark.