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re: interest rates on home mortgages wont fall anytime soon
Posted on 7/25/23 at 3:30 pm to DakIsNoLB
Posted on 7/25/23 at 3:30 pm to DakIsNoLB
That’s the other thing that’s got everything so messed up. The boomers voted for Covid just to mess with the millenials so we couldn’t go to bars for 6 months
If Covid would’ve come out in the 60s I guarantee the boomers wouldn’t have skipped woodstock
If Covid would’ve come out in the 60s I guarantee the boomers wouldn’t have skipped woodstock
Posted on 7/25/23 at 3:35 pm to el Gaucho
did biden raise them witch both arms or just one?
Posted on 7/25/23 at 3:36 pm to H2O Tiger
quote:
APR 14.99%
You calling that low interest?
Posted on 7/25/23 at 3:37 pm to Sao
quote:
Gen X dealt with these types of rates as a norm in the 90's and 00's, including after 9/11. We survived.
Not at these prices, though.
And you were able to use appreciation from your starter house to parlay that into house upgrades over time.
Current generation on the lower end of the income spectrum is pretty much F’d out of ever owning a home or being house poor. Even renovating a fixer upper is harder because 1) there’s a huge market for investors in these and 2) labor for trades to fix is also sky high
Need sizable down payment, interest eats up a lot of income, and the house won’t appreciate enough any time soon to be meaningful. Sucky situation all around.
Note this doesn’t apply to me, but I see how there can be contempt/apathy here for younger and future homeowners
This post was edited on 7/25/23 at 3:46 pm
Posted on 7/25/23 at 3:38 pm to el Gaucho
quote:
t you can’t get bootstraps for less than 7% interest
Posted on 7/25/23 at 3:39 pm to Eighteen
quote:
Not at these prices, though
Yep. Boomers always talk about how they only made 10 bucks an hour at the shoe store but then they were able to buy a 3 story house for 10k
Posted on 7/25/23 at 3:42 pm to Grad92
They really aren’t that high when you look at it from a historical perspective. It’s more of a function that everyone believed historically low interest rates of 2-3% are “the new norm.” When I bought my house 15 years ago my initial mortgage was approximately the same rate that banks are offering today. Ironically back then these were historically low interest rates that led to the housing/financial crisis of 2008. Now those same rates are considered super high and creating a looming financial crisis.
quote:
Interest Rate in the United States averaged 5.42 percent from 1971 until 2023, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.
This post was edited on 7/27/23 at 2:04 pm
Posted on 7/25/23 at 3:42 pm to el Gaucho
quote:. This is cute. Now do the 80s
and back in the 90s and 00s they even had “subprime” mortgages where the interest rate was less than 0 and they got paid to borrow money What do the boomers do when millenials try to buy our first houses? They jack up the interest rates sky high
Posted on 7/25/23 at 3:44 pm to el Gaucho
quote:
Yep. Boomers always talk about how they only made 10 bucks an hour at the shoe store but then they were able to buy a 3 story house for 10k
This is the hidden part that is probably more important than inflation or house price increases. Wage growth has been relatively stagnant for a very long time. Especially for people just graduating college and entering the middle market for jobs.
Inflation, interest rates and home prices are only one part of the equation to affordability. A kid graduating college and working a good job at a bank making $45k per year can't afford the $275k starter homes available in the market.
I was able to afford a starter home in 2003 with that wage. Not today.
This post was edited on 7/25/23 at 3:45 pm
Posted on 7/25/23 at 3:44 pm to Carson123987
quote:
I offered 10k over asking on a house 2 years ago and someone beat me. Buyer tried pulling me into a bidding war and I said no. Was getting 2.75%
Now I'm still renting and rates are in the 7s. Disgusting
Honestly noone should complain.
Mortgage rates were much higher in the 80's so anyone born in the 70's or before does not care that people are carrying a 7% mortgage now.
Posted on 7/25/23 at 3:45 pm to Epic Cajun
quote:
I know people who were putting off buying a house until they had 20% for the down payment. Now they are looking at both increased interest rates and home prices.
This was me.
Posted on 7/25/23 at 3:46 pm to Grad92
I’ll say this though, being locked in under 3% is keeping me financially responsible. I’d like to upgrade to something with a bit more room and some land, but won’t.
Posted on 7/25/23 at 3:46 pm to Grad92
The combo of high prices and high rates does suck.
But home ownership is overrated as an experience and comes with a litany of other costs that can quickly make you house poor. Don’t feel too bad about the mobility and freedom from worry that renting provides.
But home ownership is overrated as an experience and comes with a litany of other costs that can quickly make you house poor. Don’t feel too bad about the mobility and freedom from worry that renting provides.
Posted on 7/25/23 at 3:47 pm to jizzle6609
quote:
Mortgage rates were much higher in the 80's so anyone born in the 70's or before does not care that people are carrying a 7% mortgage now.
Maybe rates were higher but all houses were like 15k back then. You could work a summer job and pay cash for it
Posted on 7/25/23 at 3:48 pm to jizzle6609
quote:
Honestly noone should complain.
Mortgage rates were much higher in the 80's so anyone born in the 70's or before does not care that people are carrying a 7% mortgage now.
compare avg income to avg house price from then to now as well and you will see the difference
Posted on 7/25/23 at 3:51 pm to Grad92
Operating the money printing machines like it’s an easy bake oven has consequences
Posted on 7/25/23 at 3:51 pm to el Gaucho
quote:WTF?!
Yes it is
It’s the boomers fault too
Millenials used the power of the internet and memes to elect a millenial president for the first time. He didn’t have grey hair, his wife was hot instead of 50, he ate McDonald’s like us millenials, he drank a lot of cokes, he skipped work to go drink on the golf course. True millenial
Then 81 million boomers showed up to vote him out and elect another boomer president who immediately raised the interest rate so millenials can never own a house
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