what's happening is people aren't selling/moving from what they have to hop into something a little bit better because of having to flip their mortgage interest rate from 3% to 7.75%.

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Posted by Epic Cajun

Lafayette, LA

Member since Feb 2013

32942 posts

Posted on 10/12/23 at 11:26 am to Chad504boy

quote:
what's happening is people aren't selling/moving from what they have to hop into something a little bit better because of having to flip their mortgage interest rate from 3% to 7.75%.

Exactly, and because of that the supply of homes is still lagging behind demand. Before the rate increase I was always tentatively in the market, but I’m not trading in my 2.75% rate for a 7% rate unless I win the lottery that I don’t even play.

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Posted by sidewalkside

rent free in yo head

Member since Sep 2021

1843 posts

Posted on 10/12/23 at 11:32 am to Chad504boy

quote:
Chad504boy

Hey Zeller...what do you think is going to happen when rates come down and people are more comfortable trading from 3 to 5 instead of 3 to 7? Everyone else will be doing the same thing and competing for housing and driving the price up. How is this so hard for you all to understand?

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Posted by TideSaint

Hill Country

Member since Sep 2008

76020 posts

Posted on 10/12/23 at 11:39 am to Chad504boy

quote:
what's happening is people aren't selling/moving from what they have to hop into something a little bit better because of having to flip their mortgage interest rate from 3% to 7.75%.

This.

We bought our house 3 years ago and got a 2.25% interest rate. Got a 5 bedroom because we had 3 kids in high school.

Fast forward to now and we have 2 out the door due to graduation and our youngest will be gone in 2 and a half years.

Wife wants to downsize so I had to break out the calculator and show her how much money we are saving by staying put.

If I bought my house today, not what it is currently valued at but what I paid for it, my mortgage would increase $1,400 a month.