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re: The average interest rate on a 30-year mortgage rises to 7.62%, the highest since 2000
Posted on 9/8/23 at 9:09 am to Epic Cajun
Posted on 9/8/23 at 9:09 am to Epic Cajun
quote:
Supply has to be very low as well. I can't imagine what would have to happen for me to sell my current house at 2.75% and buy a house at 7%.
With no one selling because they love their low interest rate, the low housing supply and corporations buying up property, is it just a hopeless market for current/near future home buyers?
Interest rates, housing prices, AND insurance rates all rising...seems like an impossible situation for first time/new buyers.
What is going to have to happen for this to level out?
1
Posted on 9/8/23 at 9:11 am to Rize
quote:
My arse may just end up renting when I move to Houston.
Just moved there and that’s what I’m doing. Didn’t think I’d even contemplate this but here we are.
Posted on 9/8/23 at 9:12 am to dcrews
quote:
With no one selling because they love their low interest rate, the low housing supply and corporations buying up property, is it just a hopeless market for current/near future home buyers?
It will create more landlords and rentals. The person who has the 3.0% rate but wants/needs to move is simply going to keep their home but rent it out. They might even make some money from cash flow while still having their low mortgage rate.
Posted on 9/8/23 at 9:12 am to Epic Cajun
quote:
sell my current house at 2.75% and buy a house at 7%.
This is the real problem right now. A lot of people, myself included, got in when rates were sub 3% and aren't going to sell anytime soon. It will shake out eventually, but going to take some time. I am starting to see a lot of houses drop in price though.
Posted on 9/8/23 at 9:17 am to JasonDBlaha
It’s not that I’m not sympathetic to your premise about how hard it is for young people to buy decent homes, because I am. But to me it’s a bit like talking about how hard it was to buy something in any other period of economic upheaval. It DOES suck but this too shall pass.
Rent. Buy when interest rates drop. There will inevitably be more affordable housing as well as builders are FORCED to respond . We are on a holding pattern. It sucks but it’s not the end. I say that as someone who has had a 40% drop in income year to year because of this. Be patient. Be frugal. Stay optimistic. Vote for candidates that understand market forces. Wait for opportunity.
Rent. Buy when interest rates drop. There will inevitably be more affordable housing as well as builders are FORCED to respond . We are on a holding pattern. It sucks but it’s not the end. I say that as someone who has had a 40% drop in income year to year because of this. Be patient. Be frugal. Stay optimistic. Vote for candidates that understand market forces. Wait for opportunity.
Posted on 9/8/23 at 9:17 am to GetCocky11
quote:
Listen, I paid 12% on my $25,000 home 50 years ago. You just need to work hard and shut up.
Not too far off. I paid $50k at 8.5% for my first house that was 1,100 square feet in 1998. It is now worth about $115k according to Zillow so still very affordable.
Bought my second house in 2005 for $100K at 5% that was 1,400 square feet and it is worth $175k now according to zillow.
Both of those houses are still very affordable for most people, but most people don't want those kind of homes. They want what their parents have now.
This post was edited on 9/8/23 at 9:21 am
Posted on 9/8/23 at 9:26 am to JasonDBlaha
quote:
Couldn’t imagine being a Gen Z kid who just graduated from college and is working while trying to find a home now. It’s going in the direction where you pretty much have to be married or come from generational wealth if you want to buy a house in a decent, low-crime area with amenities. Gone are the days where you could have an average-paying job out of school and be able to buy a house and raise a family with it.
Considering how the younger generations are statistically less likely to get married, you’re going to see more cases of kids living with their parents until their 32.
My daughter and son-in-law are back at my house until we can find them a starter house. I'm not sure how people without family and a dual income could do it.
Posted on 9/8/23 at 9:27 am to Lsupimp
quote:
Buy when interest rates drop
Are interest rates going to drop though?
Even if they do, we aren't seeing 3% anytime soon.
Housing prices aren't going to drop either and wages certainly aren't to increase to offset the ridiculous cost of living increases we've seen.
All the while, investment groups are buying up large chunks of an already short supply market.
Not sure anything is going to level out any time soon.
quote:
Rent.
I always remember rent being more expensive than paying a mortgage, but these days renting is MUCH cheaper than buying. Even then, rent now is still insanely expensive.
Posted on 9/8/23 at 9:29 am to Aubie Spr96
quote:
My daughter and son-in-law are back at my house until we can find them a starter house.
Easy, according to the resident "get off my lawn" posters, just go into the ghetto and find them a dilapidated piece of shite.
Posted on 9/8/23 at 9:31 am to JasonDBlaha
“ Considering how the younger generations are statistically…”
They need to stop voting liberal.
They need to stop voting liberal.
Posted on 9/8/23 at 9:35 am to Lsupimp
quote:
That refi boom of 2025 though.
Be glad when it gets here. This 5% I'm paying on the 60k I borrowed is pissing me off. I could be at 380 a month and I'm stuck at 498.
Posted on 9/8/23 at 9:35 am to TigerV
quote:
Hate to say it - a lot of them voted for this shite
No, they need to be made aware of their mistake, it should be yelled from the mountaintops.
Posted on 9/8/23 at 9:35 am to Sput
quote:
I remember when people would line up for a city block to get 7.62%
My parents moved in 1980 and had a 14% mortgage rate. My dad thought he was getting over on the bank.
Posted on 9/8/23 at 9:36 am to dcrews
Yeah, all that is true. Rates will not be miraculously dropping anytime soon, nor inflationary pressure on builders. But, remember, market forces historically result in market solutions, because the profit motive is extremely powerful.
My belief is there will be cultural adjustments and market forces that will conspire over the next 2-5 years to make housing more affordable for first time buyers. Housing prices and interest rates will both decline. Not immediately, not miraculously, but over time and for logical reasons.
Now I know I will get pushback from people who are smarter than me on this,and I respect all the truth bombs people are dropping, but my career depends on this and that’s where my analysis has led me. This sucks but it’s not permanent.
My belief is there will be cultural adjustments and market forces that will conspire over the next 2-5 years to make housing more affordable for first time buyers. Housing prices and interest rates will both decline. Not immediately, not miraculously, but over time and for logical reasons.
Now I know I will get pushback from people who are smarter than me on this,and I respect all the truth bombs people are dropping, but my career depends on this and that’s where my analysis has led me. This sucks but it’s not permanent.
Posted on 9/8/23 at 9:38 am to DakIsNoLB
quote:
Unless mom and dad are putting up all the upfront costs, how is a new college grad going to buy a house anyway? Renting and saving until you can get a house is the rule not the exception.
And if these kids would quit pursuing degrees that don't pay while taking on mountains of debt, they'd stand a better chance of not having to live with their parents.
Sure, but even kids who are making the right decisions are still in a shite situation. I bought my house 6 years ago. If I was 6 years younger, looking to buy the same house that I'm in now and had made all of the same life choices that I made back then (no student loans, good degrees, etc...), I would be stuck looking at a mortgage that is $1450 more than I currently pay.
Posted on 9/8/23 at 9:44 am to Cosmo
quote:
Yet prices still arent dropping
Realtors are assholes
Simple supply and demand. Realtors have nothing to do with that. There isn't enough housing.
Posted on 9/8/23 at 9:46 am to stout
High interest rates great for big institutional and foreign buyers. They have cash.
I'm sure the Blackrocks of the world had nothing to do with orchestrating it.
I'm sure the Blackrocks of the world had nothing to do with orchestrating it.
Posted on 9/8/23 at 9:53 am to ronricks
Societally, a glut of housing is infinitely more economic destructive than not enough. For instance, China is an absolute shitshow disaster in progress right now for that very reason. There is actually a weird upside to this OVER TIME. It sure sucks now, though.
I’m considering cashing out and moving to Florida. My kids are grown and I can make more money there. But do I really want to go from an beautiful home with a great view in a great location for $1750 a month to a dump next to a Publix for the same price ? Of course not. Like everyone else, it’s a holding pattern. I think we see movement in the right direction in another 4-5 quarters. It’s going to continue to be painful.
I’m considering cashing out and moving to Florida. My kids are grown and I can make more money there. But do I really want to go from an beautiful home with a great view in a great location for $1750 a month to a dump next to a Publix for the same price ? Of course not. Like everyone else, it’s a holding pattern. I think we see movement in the right direction in another 4-5 quarters. It’s going to continue to be painful.
Posted on 9/8/23 at 9:58 am to stout
quote:
Per Black Knight: It would take some combination of up to a 28% decline in home prices, a more than 4% reduction in 30-year mortgage rates, or up to a 60% growth in median household incomes to bring home affordability back to its 25-year average.
Posted on 9/8/23 at 9:59 am to stout
quote:quote:
Commie!!
Lol
There was a thread here yesterday calling you out (in the title) as a commie. I can't remember the reason but the poster came across as some drunk baw who struggled to get his GED at 35.
I think it got whacked sometime after 4 pages, the overwhelming response to it was "wtf?"
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