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re: 30-year fixed-rate mortgages reach 7.15%

Posted on 10/19/22 at 8:59 am to
Posted by DallasTiger11
Los Angeles
Member since Mar 2004
11866 posts
Posted on 10/19/22 at 8:59 am to
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 by Vacherie Saint
Member since Aug 2015
39752 posts
Posted on 10/19/22 at 9:02 am to
the rates and home values will equalize within the confines of general economic health. A recession coupled with massive inflation will kill the housing market much quicker. As SDV mentioned, 7% wouldnt have scared anyone 20 years ago. Now, it could lead to a sector collapse.

ETA - petro products are heavily integrated into home construction as well, so high oil coupled with generally higher prices on building materials could make building at higher rates a non-starter. Then the housing market could become exclusively low-end secondary.
This post was edited on 10/19/22 at 9:08 am
Posted by Tomatocantender
Boot
Member since Jun 2021
4857 posts
Posted on 10/19/22 at 9:05 am to
quote:

What policy of Biden's has driven the 30 year fixed to these levels? I


Oh I don't know, maybe we can start with Potato's very first day in office when he shut down oil transportation pipelines and federal oil leases. You know, the single most independent commodity that drives our economy and doesn't send inflation through the roof causing Powell to raise 50 and 75 basis points at every FOMC meeting to tame runaway inflation and energy dependence on really bad world stage players that hate our guts.
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