the mortgage payments are too damn high!
so going to be an even greater supply/demand imbalance since new building will slow at these rates?
In markets like the Bay, you’re still going to be dealing with a bunch of people paying cash.
Those people just won’t get those loans. If they bought last year they got a great fixed rate. Buying now, they’ll buy cheaper. What will generate foreclosures is a glut of unemployed people underwater on their mortgages. If values crash and unemployment goes way up, then we’ll see foreclosures. It’ll take both. If rates keep rising we could see both but it’ll be a couple years imo.
In my area sellers are just delusional. Pricing houses like it’s 90 days ago.
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Heard a story a few weeks ago that the average sale price was now below the list price, which is normal.
It’s the same here. The only people who are still getting deals done at those prices are home builders offering 4-5% mortgages through their own lender.
30 year fixed hit 6.3% today. gg housing market
We moved on July 1 and locked in a 3% rate.
My mortgage payment would be 30% higher if we bought today.
For those banks actually holding mortgages, I can’t imagine them wanting to hold mortgages yielding 3% in an environment where new mortgages yield 6.6%. I think the incentive is exactly the opposite - do anything possible to have super-low rate loans pay off early.
seems unethical for the Fed to be creating these huge bubbles/swings by constantly fucking drastically with interest rates.
The Fed is trying to mellow the swings and prevent a bubble. Keeping rates at zero and letting everyone start their own version of a shopify when it’s pretty damn obvious that purchasing power on the horizon is about to take a shit isn’t helping when those buyers had no idea that that those things were destined to shift.
“Picture this: the customer’s mortgage as an NFT.”
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Fucking hell, it really does feel like there’s a fucking conspiracy designed to permanently keep home ownership out of reach for my generation
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3% was to be had only 2 and a half months ago? I was sure things had gone to shit before that.
Locked it in around mid-March
Yeah if you look at the boom bust cycles and swings we had before there was a fed, what we have today seems much more mild and preferable.
It does seem like the fed is too slow to start raising rates (partly due to political pressure which they are supposed to be independent of) and then has to be too aggressive when more mild rate rises don’t have the juice to counteract inflation.
I guess the scheme would be to so not sell your house but keep it with the low mortgage and try to rent it out while and also renting in your new location.
I mean there kind of is, although I’d swap out conspiracy for capitalism.