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re: 30-year fixed-rate mortgages reach 7.15%
Posted on 10/19/22 at 8:49 am to SDVTiger
Posted on 10/19/22 at 8:49 am to SDVTiger
it wouldnt be considered that high a few decades ago. The problem now is that homes are overvalued based on low rates. Back then, homes values were at equilibrium with higher rates.
1
Posted on 10/19/22 at 8:50 am to SlowFlowPro
quote:
This is just chickens coming home to roost from all of the post-2008 economic policies that were implemented (and maintained from GWB to Obama to Trump and now Biden) to avoid the reckoning that we should have felt in 2009 and onward. We created a bigger bubble and that bubble has to pop at some point.
For what it's worth, prior to COVID during the Trump presidency the Federal Reserve was winding down its balance sheet that became historically inflated from 2008. That was done through good foreign policy which lead to good energy policy. Then COVID hit and fiscal policy went to shite which lead to shitty monetary policy to cover congressional spending.
Posted on 10/19/22 at 8:50 am to BugAC
quote:
The same retarded millenials bitching that "we can't afford homes yet the boomers were able to" are also pulling the lever for Biden.
Ironically the boomers were paying 10%+
Posted on 10/19/22 at 8:50 am to stout
Still 4% below my first mortgage rate.
Posted on 10/19/22 at 8:51 am to stout
quote:
I truly don't think the rate hikes are finished and we may inch close to 10% mortgage rates as inflation has not slowed down with the current hikes.
I could then see under this voodoo admin where 40 and 50 year mortgages become the new norm. Who needs actuarial justifications when you can just paper push and move decimals around.
Posted on 10/19/22 at 8:51 am to RougeDawg
quote:
Please explain
The infaltion report was so fricking high Last Oct that when we get the reading for this Oct it will be lower causing rates to drop as infalation will have seemed to peak
Feds will hike twice more to show the fight causing rates to go lower. Add in that they will go dovish and start QE imo in Q1 will also drive it lower
Every single recession we have had rates drop
Also rates are not 7.15 so it needs a 1.5 drop and we are at 5
Obviously they could go to 20% and the world is over im just optomistic
Posted on 10/19/22 at 8:52 am to stout
Knew this was coming. All by Biden's hand and designed too.
I'm just glad I'm locked in at 2.25%
I'm just glad I'm locked in at 2.25%
Posted on 10/19/22 at 8:53 am to stout
quote:
It is actually 7.18%
Retail maybe with their built in 2%
Wholesale is not 7%
Posted on 10/19/22 at 8:53 am to stout
Sucks for the people who were waiting for the market to cool down even though the interest rates were low.
Now the rates are high as frick
Now the rates are high as frick
Posted on 10/19/22 at 8:54 am to SDVTiger
quote:
And im going under 5s end of Q1 on my predictions
Ok I'll play...what makes you think this...and would have to happen for this prediction to occur?
I have somewhat of an idea of what could help stump the rise, and maybe a tiny reversal but over 2pts in less than 6 months though, would be interesting to understand your reasoning.
Posted on 10/19/22 at 8:55 am to riccoar
quote:
I'm just glad I'm locked in at 2.25%
Posted on 10/19/22 at 8:55 am to Lawyered
Our priorities have always been protecting property values. Time for us all to suck it up and take our losses. This has got to end.
Cut regulations, start building cheap arse housing for lower income people to purchase.
Cut regulations, start building cheap arse housing for lower income people to purchase.
This post was edited on 10/19/22 at 8:57 am
Posted on 10/19/22 at 8:56 am to stout
I sold in June at the peak before the rate hikes. Im apartment living again and my rent is 400 more than my mortgage was, but I made 225k on a house I only had for 4 years with zero improvements.
You probably should have sold already.
This is only the beginning unfortunately. I'm just holding cash waiting for the bottom to fall out.
Another hike of 0.75 will still not be enough to flatline the inflation. We will see 9% interest rates before the new year.
You probably should have sold already.
This is only the beginning unfortunately. I'm just holding cash waiting for the bottom to fall out.
Another hike of 0.75 will still not be enough to flatline the inflation. We will see 9% interest rates before the new year.
Posted on 10/19/22 at 8:57 am to bayoudude
quote:
But yet cd rates are barely 2%. In the early 2000’s when home mortgages were in the mid to upper 6% range a one year cd was paying 4.75%
So buy a TBill @ over 4% instead. Duhhhh
Posted on 10/19/22 at 8:59 am to stout
What policy of Biden's has driven the 30 year fixed to these levels? I hate him just as much as you do but this is the Fed.
Posted on 10/19/22 at 9:00 am to stout
****This is not a defense of Biden and/or his shitty policies****
Interest rates were NEVER supposed to be ZERO forever. It was bad policy that we had to pay for at some point. We have an entire generation that has no idea what the net present value of money is because interest rates were non-existent.
Interest rates were NEVER supposed to be ZERO forever. It was bad policy that we had to pay for at some point. We have an entire generation that has no idea what the net present value of money is because interest rates were non-existent.
Posted on 10/19/22 at 9:01 am to stout
quote:
I still think there is an attack on home ownership. Hell, they have told us they are going after it.
The insane prices were an attack on home ownership, too. The coin has 2 sides.
Posted on 10/19/22 at 9:02 am to SDVTiger
quote:
Its not really that high
Oh well… if you say so!! Whew! I was beginning to worry! So glad we have someone here just to say this and not actual numbers from banks.
You need to call the financial folks to correct them.
quote:
And im going under 5s end of Q1 on my predictions
Now from your infinite knowledge… what would cause interest rates to drop so drastically when they have been on the rise for a year?
A) the economy skidds slower and housing starts and sales plummet…
Or
B) Biden and his economic wizards waves their wand and fixes everything in 5 months time.
Posted on 10/19/22 at 9:02 am to bayoudude
quote:
But yet cd rates are barely 2%
Wut?
Just shopped 1 year CDs on etrade and they are 4.35%
Posted on 10/19/22 at 9:02 am to GumboPot
quote:
For what it's worth, prior to COVID during the Trump presidency the Federal Reserve was winding down its balance sheet that became historically inflated from 2008. That was done through good foreign policy which lead to good energy policy. Then COVID hit and fiscal policy went to shite which lead to shitty monetary policy to cover congressional spending.
Yes if Covid never happens, this likely doesn't come for a bit. However, if Covid never happens, our inflation doesn't get nearly as bad, as well. This means that the stock market, home prices, etc. don't increase like they do (most of the "lost wealth" was really fake, inflated wealth).
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