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re: Homebuyers are now spending 40% of their gross income on mortgage and interest costs
Posted on 7/22/23 at 10:53 am to fallguy_1978
Posted on 7/22/23 at 10:53 am to fallguy_1978
quote:
That student loan payments resuming will have little to no economic impact?
Not a significant one. Biden admin has put several measures in place to essentially mitigate that impact.
2
Posted on 7/22/23 at 10:54 am to threeputtforbogie
quote:
I think DFW should invest more in their light rail in parallel to the north tollway
Where? Most of the Tollway has buildings right next to it.
Posted on 7/22/23 at 10:55 am to Artificial Intel
quote:
Get ready to be surprised.
Are you saying restarting payments on large loans will have no effect? You don't think those people took on other debt in the past 3 years because they had money to spare? Having that spare money is part of what drove the auto boom with people paying over sticker for $80K Surburbans. That's not counting the cost of living increases in the past 3 years by way of inflation. The majority of Americans are already living check to check with not much in savings. Tacking on another note suddenly will have a large impact.
Sure there were some people that were smart about it and kept paying on the loans or didn't take on additional debt but I bet that is an insignificant number considering the amount of student debt owed.
It will be good for inflation as there will be less money circulating but I am not sure how you can say with confidence there will be no negative effects from it.
This post was edited on 7/22/23 at 10:56 am
Posted on 7/22/23 at 10:56 am to Artificial Intel
quote:
Not a significant one.
Posted on 7/22/23 at 10:56 am to USMCguy121
quote:
And leave disaster prone high insurance areas
state farm just left California home insurance in May
Posted on 7/22/23 at 10:57 am to Artificial Intel
quote:
Biden admin has put several measures in place to essentially mitigate that impact.
He's already lost in court on several of his attempts. What he has gotten through is a drop in the bucket of the overall amount of debt people owe on student loans.
Posted on 7/22/23 at 10:58 am to stout
Thanks Stout.
These threads are always fascinating.
These threads are always fascinating.
Posted on 7/22/23 at 11:00 am to stout
quote:
It will be good for inflation as there will be less money circulating but I am not sure how you can say with confidence there will be no negative effects from it.
At least you provided some evidence to why you think so. I say it with confidence because of the current administration. Have you read some of the measures they’ve already implemented?
Posted on 7/22/23 at 11:04 am to Artificial Intel
quote:
At least you provided some evidence to why you think so. I say it with confidence because of the current administration. Have you read some of the measures they’ve already implemented?
Do you have any specific links that highlights the measures the current administration has implemented?
Posted on 7/22/23 at 11:08 am to stout
Easy decision for me after my divorce. We sold our 3400 sq ft home with a mortgage that neither of us could have afforded individually. I put a hefty down payment on a 1200 sq ft home on 1.3 acres that I will have completely paid off in a year.
Keeping up with the Joneses is becoming financially impossible for more and more people. I really do feel sorry for younger people today having to deal with the current economy. Hopefully it will scale back the irresponsible “wants” that so many have.
Keeping up with the Joneses is becoming financially impossible for more and more people. I really do feel sorry for younger people today having to deal with the current economy. Hopefully it will scale back the irresponsible “wants” that so many have.
Posted on 7/22/23 at 11:10 am to Artificial Intel
Link 2
quote:
To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt relief to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. Get details about one-time student loan debt relief.
Doesn't discharge the entire debt. People will still have notes to pay
Link 3: $116 billion forgiven of $1.78 trillion in student loans is a drop in the bucket
This post was edited on 7/22/23 at 11:16 am
Posted on 7/22/23 at 11:14 am to stout
We're at 7%.
Posted on 7/22/23 at 11:16 am to cgrand
quote:
don’t buy a house you can’t afford
We bought our house in central Florida 2 years ago. It was steep but we were glad we found something when we did because we wouldn't be able to afford this place now. Or much else for that matter unless you want a fixer upper
Posted on 7/22/23 at 11:17 am to stout
quote:
Last month, a survey from Morning Consult painted a depressing picture of student loan borrowers ahead of payments resuming. More than half said they were likely to default and 62% said they expected to miss at least one payment. (Borrowers with incomes of at least $100,000 were the most pessimistic: 73% said they expected to miss at least one payment, while 69% said they would likely default.)
According to the TransUnion study, 53% borrowers facing repayment have also accumulated new credit card debt. Roughly a third (36%) have taken out new auto loans, which have reached record-breaking highs over the past few years.
As a result, TransUnion says that even with ongoing efforts to forgive or alleviate student debt, most borrowers will experience a “payment shock” as they transition to repayment. Wells Fargo also predicts that “the struggle will be real and unfamiliar” for these borrowers, and it will likely slow U.S. spending growth just as inflation is getting closer to the Fed’s 2% goal.
Posted on 7/22/23 at 11:19 am to Deuces
quote:And then you have an unsellable house in a place no one wants to live
You can buy a house in Louisiana for 150k that’s 1.4 million in the Bay Area.
Posted on 7/22/23 at 11:20 am to stout
Checking in at 12% here, and I still complain we bought too much house.
Interest rate 4.1% fixed, we put 15% down if I remember right.
Sounds like I need to lighten up a bit comparatively.
Interest rate 4.1% fixed, we put 15% down if I remember right.
Sounds like I need to lighten up a bit comparatively.
Posted on 7/22/23 at 11:22 am to PikesPeak
quote:
And then you have an unsellable house in a place no one wants to live
Lol. I don’t know where you’ve been hearing this. I’ve heard the same kind of argument from other high-COLA dwellers.
In my town people are selling their houses $25-50k+ above in no more than 1-2 months on the market.
This post was edited on 7/22/23 at 11:24 am
Posted on 7/22/23 at 11:24 am to ShoeBang
We're just under 15% in Denver, 3.25% and 20% down. Insert white suburban dad saying: "Glad we got here when we did".
That being said, if we have another kiddo, the house will start to feel preetty tight
That being said, if we have another kiddo, the house will start to feel preetty tight
Posted on 7/22/23 at 11:24 am to fallguy_1978
quote:
According to the TransUnion study, 53% borrowers facing repayment have also accumulated new credit card debt. Roughly a third (36%) have taken out new auto loans, which have reached record-breaking highs over the past few years.
Yes, the parallels between now and how it started in 2007 are hard to ignore.
First people quit paying their credit cards
More US consumers are falling behind on payments
Check
The auto industry took a dive
Check
Then the housing market adjusted as people were forced to sell and inventory shot up. Literally, the only difference right now is housing inventory remains low.
It will be interesting to watch as Airbnb houses hit the market and/or people are forced to sell due to other debt piling up.
Of course, the flip side is nothing changes as we keep forgiving debt and/or the Fed drops rates again making money cheap again.
I personally don't think anything will happen until after the 2024 election. They will do all they can to keep things propped up until then.
This post was edited on 7/22/23 at 11:25 am
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