Some are predicting 7-8% rates on the 30 year fixed coming. Maybe another housing crash brewing. The current mortgage rates are getting close to doubling the interest payments for new buyers vs last year. This is going to kill home prices which frankly were getting ridiculous locally.
Latest Mortgage Rates on the 30 year fixed is over 6% and rising
- Thread starter KNIGHTTIME^
- Start date
There is no historical correlation between interest rates and home prices. The only relatively sustained drop in home prices on record was during the housing bubble of 14 years ago. A period of time which also saw mortgage rates actually drop to record lows.
If the market was driven by what is affordable we wouldn’t have seen the recent increases we have. Increases that have far outpaced wages. This is due to a supply shortage. The supply shortage isn’t mitigated by a higher mortgage interest rate. Particularly when many of the transactions are occurring with investor cash rather than mortgages.
What happens when the investor class doesn’t see a profit on the horizon because people can’t afford to buy?
why wouldn’t they see profit? Capital appreciation is all but assured over the long term. And most investors are looking for a cash flow generator primarily and capital appreciation secondary. Have you seen rent prices? They have increased just as fast as home prices.
None of that should make prices drop. What you will likely see happen is home values wont go up nearly as fast, but I dont think we are going to see a drop in home values. Investors are buying homes for rentals or air BNBs, so even if interest rates to up, they arent going to go up enough to make people lose money on these things (especially since there are a lot of cash sales) unless they just bought homes that nobody wants to rent.
High inflation actually helps things like existing mortgages and tangible material assets like houses. Their relative value in the market is consistent regardless of what the inflation number is. The only housing crash on record correlated with a falling mortgage interest rate (to record lows) and the only deflation event in modern history.
And even during that time, prices recovered pretty quickly. I bought my first home right before the market crashed in 08, but 5 years later when I sold it, I still made a decent profit. So even if there is a decline in home values, it would likely just be temporary.
There are scores of people sitting on the sidelines waiting for a price drop that has never come. Demand will continue to outpace supply. Those who own homes aren’t selling because a comparable home is now a bigger hit in fees and closing costs. And the number sitting on the sidelines only grows because everyone is calling for a top. The top in 2008 was due to lax lending standards and foreclosures driving prices down. People were more than happy to short sale or foreclose to you for a deal to get away from their home ownership. Fast forward 15 years and people are going to be more inclined to do whatever it takes to hold onto their homes. Especially given what we saw in the post 2008 recovery.
On this day 10 years ago gas was $3.94 per gallon. It is literally one of the only things that has underpaced inflation for a decade. Economically one of the most successful decades in history.
And by far the worst for printing money by a good fraction of magnitude. Printing can -- albeit temporarily -- prop up anything.
Euro zone inflation hits another record high of 7.5% as Russia-Ukraine war pushes up energy prices
The cost of living hit another record high in the euro zone, raising further questions about how the ECB can stabilize such rapidly rising consumer prices.
Damn Biden at it again. Mucking up inflation in Europe.
Lenders are still selling loans based on what your monthly payment will be. Unlike 2007, they can’t play nearly as many games to get people into a home by pushing off the impact of the home price for 3/5/7 years for people who could not otherwise afford the home. So the amount of people that can buy inventory at $350k+ is going to shrink when that $350k monthly payment (which was $2400 for a 30yr fixed is now >$3000). Because with inflation of prices comes higher taxes, higher insurance, etc.
The inventory being added is over $350k. Wages have not risen commensurate and there’s no indication that the majority of Americans are saving money to make their mortgages cheaper. How many Americans really sat on the sidelines when interest rates were historically low just because prices were high? How many of those just can’t afford the house they want and can’t afford it even more when money gets more expensive?
Add that Investors can’t carry inventory infinitely. At some point they need to see a profit. If they think that the resale market is going to flatten and the cost to borrow money is going to affect sale velocity, they’re going to sell.
The Fed has already messaged the stock market . Deleverage and liquidate, or we’ll do it for you and you won’t get shit
Until stocks and other bubble assets correct, the 65% of Americans that own equities will continue to bid, borrowing cash from relatives if necessary . The other 35% 🤷♀️
What an awesome investment strategy 😂😂😂😂😂. This is the guy who’s going to retire at 45? lol Can you even get a condo for $200,000 today? Investing in dump areas and you’re making fun of people who live in Lake Mary where the average condo is at least double that. That’s just golden
Speaking of golden.
BUY GOLD!!!!
Unemployed, handyman parrot using my phrase
hahhahhahahha!!!
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Yeah… we believe you. Makes fun of Lake Mary. Talking retirement at 45 investing in low income housing.making 10’s of thousands or even maybe, maybe, low Hundreds.
Love it!!! 🦜🦜🦜. What a loser, delusional, big talker wannabe
Let’s compare net worth loser. Oh.. that’s right Message board people aren’t important!!!!! You only responded at 7:00 A.M. to an anonymous poster. Triggered!!!
😂😂😂
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Dude is clueless. While all the other chuds realize they are wrong, they start to disappear. Crazy Mike is the opposite. He goes all in
His “buy gold” stuff is hilarious. If he had taken his own “advice”, he would be doing quite well. Chuds gonna chud though. He’s probably a tech and bonds bag holder. See you at 10K nasdaq
Let’s all buy gold and end up like @Boston.Knight who’s driving a hoopty car and can’t afford a hotel for away games.
What an investor. Hahahahaha 😂😂😂
Technical degree
Means that the degree you got from a school is not accredited except at the school itself. There is a standard degree in which at the least takes 4 years and there is a technical degree which can take as little as 4 weeks. Usually the schools that offer technical degrees are for-profit private schools which tend to butcher the course. Such as taking out the standard liberal art requirements, Taking out the requirements for advanced classes, etc.
For the most part they are not accepted by other schools except the school you got it from. They tend to not be valued by employers. Due to the fact that if a diploma says Masters(type of degree) on it it technically doesn't mean anything.
😂😂😂😂
IT
Stands for "Information Technology," and is pronounced "I.T." It refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that work with these technologies. Many companies now have IT departments for managing the computers, networks, and other technical areas of their businesses. IT jobs include computer programming, network administration, computer engineering, Web development, technical support, and many other related occupations. Since we live in the "information age," information technology has become a part of our everyday lives. That means the term "IT," already highly overused, is here to stay.
Let me know when you could buy 5 properties in cash and have your primary residence mortgage 100% paid off with 3 cars all cash......at 35 years old.
You're out of your league.
Net worth and last paycheck or STFU parrot 🦜 🦜🦜🦜🦜
