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re: 30-year fixed-rate mortgages reach 7.15%
Posted on 10/19/22 at 9:02 am to stout
Posted on 10/19/22 at 9:02 am to stout
Rates should be determined by the market and not the Fed. They never should have been as low as they were. I have a 15 year note at 2.25%. Stupid low.
Would you rather cheap money and high inflation instead?
Would you rather cheap money and high inflation instead?
1
Posted on 10/19/22 at 9:02 am to DallasTiger11
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.
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 on 10/19/22 at 9:03 am to KAGTASTIC
quote:
Ok I'll play...what makes you think this...and would have to happen for this prediction to occur?
I posted above why i think that could happen
Not to mention Fannie Mae predicts 4.3% rates
quote:that was in Sept 2022
Fannie Mae has predicted that the 30-year fixed-rate mortgage will drop to an average of 4.5% in 2023, REALTOR magazine
As do the Banks which is why they are charging so much (and covering inflation)
This was going to happen before Covid anyways but that fricked it up lioe everything else
quote:
hate him just as much as you do but this is the Fed.
Feds dont move Mortgage Rates inflation does
This post was edited on 10/19/22 at 9:05 am
Posted on 10/19/22 at 9:05 am to DallasTiger11
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.
Posted on 10/19/22 at 9:05 am to stout
My first house in early 2000s was 6.25%.
I do enjoy the 2% I have now though
I do enjoy the 2% I have now though
Posted on 10/19/22 at 9:05 am to Aubie Spr96
quote:
Interest rates were NEVER supposed to be ZERO forever
Exactly. Rates had to rise at some point. There will always be tradeoffs and adjustments to get to some market equilibrium.
The market favored investors for too long.
Posted on 10/19/22 at 9:09 am to GumboPot
Trump was all for QE and low interest rates…
quote:
WASHINGTON (Reuters) - U.S. President Donald Trump on Tuesday called again for the Federal Reserve to further lower interest rates and boost quantitative easing, saying it would boost exports. “Would be sooo great if the Fed would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom!” Trump wrote in a post on Twitter.
Posted on 10/19/22 at 9:10 am to stout
Builder baws between a rock and a hard place.
Posted on 10/19/22 at 9:12 am to Lone Wolf McQuade
Sure. So was O.
It can be good policy if the economics are right.
It can be good policy if the economics are right.
Posted on 10/19/22 at 9:13 am to theRealJesseD
quote:
So buy a TBill @ over 4% instead. Duhhhh
Hell… the ONE year is over 4.25.
Posted on 10/19/22 at 9:17 am to Vacherie Saint
quote:
Then the housing market could become exclusively low-end secondary.
Seems like this is the plan. Especially with the boarder wide open.
Posted on 10/19/22 at 9:17 am to stout
That is still below the average 30 yr mortgage for the last 50 years. Interest needs to be at a high rate to keep dumb arse people from buying things they can’t afford like what happens when you have low interest.
Posted on 10/19/22 at 9:19 am to ChEgrad
quote:
Still 4% below my first mortgage rate.
My first (1995) was 9% something. Bought our last house 11 years ago at 3.75% and re-fied in the summer of 2020 for 2.75%. I remember thinking, "I can't believe the bank is actually this stupid." Closing attorney went over the amortization schedule with us "in case we wanted to pay it off early" but then commented "I don't know why you'd ever want to do that."
Posted on 10/19/22 at 9:21 am to DarthRebel
quote:
My first house in early 2000s was 6.25%.
Went over 15% in the early 80's
Posted on 10/19/22 at 9:23 am to highcotton2
quote:
That is still below the average 30 yr mortgage for the last 50 years. Interest needs to be at a high rate to keep dumb arse people from buying things they can’t afford like what happens when you have low interest.
I have been in my industry of dealing with foreclosures since the 2008 crash. I have been a contractor and in real estate since 2001. FYI, people buy dumb shite no matter what.
I see it all of the time. Pull up to a home getting foreclosed on and some directional driller making $250K per year didn't pay his mortgage but has a ton of side-by-sides, toy haulers, $200K worth of vehicles, etc. It doesn't matter. If people can put it on credit, and afford the monthly payments, they don't care what the rates are when it comes to stupid shite.
Posted on 10/19/22 at 9:23 am to stout
quote:
Remember how Obama tried to kill values by making every new development set aside a portion for low-income housing?
It was far worse than that. He literally was trying to put section 8 housing in the middle of uber affluent areas.
I pass by this very nice apartment complex on my way to work every day. I was at lunch across the street from there one day and started talking to this gal who worked at the restaurant and lives at the chic apartments across the street. They pay very high monthly as it's gated and has all the bells and whistles.
Wellllll, the owner of the building opted to classify half of the complex as section 8 which I didn't even know was possible. So now the tenants are trying to get out of their lease because there are problems just about every night there, but the management company won't let them b/c "they signed a lease". Weird times we live in.
Posted on 10/19/22 at 9:25 am to stout
Wow. Glad it's not mine.
Posted on 10/19/22 at 9:27 am to SDVTiger
quote:
Feds dont move Mortgage Rates inflation does
Not sure who you quoted for the above response, but wondering something...what rate are mortgage providers paying now compared to a year/6 months ago?
Posted on 10/19/22 at 9:29 am to Lone Wolf McQuade
quote:
Would you rather cheap money and high inflation instead?
I'd prefer low wages and lower prices myself.
Posted on 10/19/22 at 9:31 am to RogerTheShrubber
quote:
They're creating a problem they can come in and "fix" so you'll be grateful.
See gas prices as a prime example. Under their watch they doubled from 2.00 or so to 4.00+. Then when they go down a little from the 4.00 high , they claim… look at that, we lowered gas prices.
When in fact they increased tremendously under their watch.
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