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Started By
Message
“Rates will come down, just re-fi then.” Why do people keep saying this in today’s world?
Posted on 10/25/23 at 3:59 pm
Posted on 10/25/23 at 3:59 pm
Realtors
Old people
They are all saying the same thing- the rates will come down on 30 yr mortgages.
I really don’t see how.
This is not the 1980s. The national debt was not $34 Trillion. Regan had help from the other side of the aisle - Old school blue dog Dems- that he could at least work with and that knew what needed to be done for country.
This time is different.
$34T debt
Both parties spending like drunk sailors
Treasury going Brrrrrr with the money press.
So tell me why do the rates have to “go down?”
Old people
They are all saying the same thing- the rates will come down on 30 yr mortgages.
I really don’t see how.
This is not the 1980s. The national debt was not $34 Trillion. Regan had help from the other side of the aisle - Old school blue dog Dems- that he could at least work with and that knew what needed to be done for country.
This time is different.
$34T debt
Both parties spending like drunk sailors
Treasury going Brrrrrr with the money press.
So tell me why do the rates have to “go down?”
26
Posted on 10/25/23 at 4:09 pm to Covingtontiger77
It's easy to say that when it's not them having to spend $1,000 extra per month until rates "go down".
Posted on 10/25/23 at 4:10 pm to Covingtontiger77
I agree.
But the natural tendency of politicians (who have way more influence over economic policy than they ever should) is to drop the rates.
What today's Realtors and first time homebuyers may not realize... the current rates are closer to historic averages.
I remember after 9/11 when rates took a huge drop (down to about 6.125% for a 30 year mortgage), conventional wisdom was that those rates would be historic lows for the next decade.
But the natural tendency of politicians (who have way more influence over economic policy than they ever should) is to drop the rates.
What today's Realtors and first time homebuyers may not realize... the current rates are closer to historic averages.
I remember after 9/11 when rates took a huge drop (down to about 6.125% for a 30 year mortgage), conventional wisdom was that those rates would be historic lows for the next decade.
Posted on 10/25/23 at 4:12 pm to Covingtontiger77
2 downvotes
Yet no reply stating why the down voters believe rates will go down AGAIN like they “always do”
Yet no reply stating why the down voters believe rates will go down AGAIN like they “always do”
Posted on 10/25/23 at 4:13 pm to Covingtontiger77
I saw a realtor post today about how rates are high now and you MUST buy now b/c rates and prices will only go up 
Posted on 10/25/23 at 4:13 pm to TheBoo
quote:
It's easy to say that when it's not them having to spend $1,000 extra per month until rates "go down".
It's insane how much the realtors protect their bottom line and influence sellers to do closing cost credits instead of just lowering the price of the home. Completely gross industry.
Posted on 10/25/23 at 4:21 pm to Covingtontiger77
So if you think they won't come down, why wouldn't people just buy now? 
Posted on 10/25/23 at 4:22 pm to Covingtontiger77
They’ll come down. To 5% at best lol
Posted on 10/25/23 at 4:24 pm to Covingtontiger77
Rates will either come down or they won’t. Either way if you want to own a home, buy it. Rents will soon catch up to be just under what a mortgage would be. (They are very close here apples to apples.)
Posted on 10/25/23 at 4:25 pm to castorinho
quote:
So if you think they won't come down, why wouldn't people just buy now
The usual of what supposed to happen when rates go up hasn’t happened home prices go down.
We are not seeing the normal inverse relationship between rising interest rates and thus housing prices coming down.
Posted on 10/25/23 at 4:25 pm to Covingtontiger77
Bc the government cannot afford the interest on its own $34T in debt that you highlighted.
Posted on 10/25/23 at 4:26 pm to castorinho
quote:
So if you think they won't come down, why wouldn't people just buy now?
I don't think the OP is complaining about logic.
I think the complaint is that Realtors will do/say whatever they need to in order to protect their bottom line.
Posted on 10/25/23 at 4:33 pm to Shepherd88
That’s why we all the sudden have so many crisis lately. Covid, Ukraine, Israel. Need reasons to print money and inflate the debt away.
Posted on 10/25/23 at 4:41 pm to Covingtontiger77
quote:It's a good question, mostly just wishcasting. They might go down, they might not.
“Rates will come down, just re-fi then.” Why do people keep saying this in today’s world?
quote:I don't understand the relevance of this comparison. Can you be more specific what you are referring to? Rates were higher than this many times after Reagan - e.g. almost all of the 90s.
This is not the 1980s. The national debt was not $34 Trillion
Posted on 10/25/23 at 4:50 pm to Covingtontiger77
Once we go full blown recession and people lose their job feds duel mandate kicks in. Easy to be hawk when unemployment is good.
Posted on 10/25/23 at 4:51 pm to Covingtontiger77
quote:
We are not seeing the normal inverse relationship between rising interest rates and thus housing prices coming down.
Give it time. Everything you see now is the previous market trying to sputter on at these rate levels. Think about it…housing has almost doubled in the last 5 years…we get daily threads on how housing is unaffordable….consumer debt spiking…etc.
The pendulum is swinging.
Posted on 10/25/23 at 5:50 pm to SquatchDawg
They will come down, we just don’t know the timetable. It will be after the FED completely destroys the economy, unemployment rises and homes get foreclosed on, then the FED will always lower rates to stimulate the economy and they will buy their own Treasuries, causing those rates to go down and the value of current bonds go up.
The FED has a long track record of overdoing it both ways, raise too much then lower too much.
The FED has a long track record of overdoing it both ways, raise too much then lower too much.
Posted on 10/25/23 at 6:18 pm to Covingtontiger77
quote:
So tell me why do the rates have to “go down?”
Are you saying like in the short term or forever?
Posted on 10/25/23 at 6:40 pm to UltimaParadox
When the economic cycle goes to shite, rates will come down with a quickness. It’s a huge reason for why the Fed raised rates so quickly….they are a one trick pony. When rates were low they had no lever to pull for the inevitable economic slowdown.
Posted on 10/25/23 at 7:24 pm to Covingtontiger77
quote:
Why do people keep saying this
quote:
Realtors
Because they think it serves as an argument to buy.
Because they are realtors. And they always say now is the best time to buy.
quote:
Old people
Old people say a lot of things. Just nod and change the subject to the Civil War or World War 2.
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