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re: Breaking: Fed leaving interest rates unchanged.
Posted on 7/29/26 at 3:07 pm to Roll Tide Ravens
Posted on 7/29/26 at 3:07 pm to Roll Tide Ravens
Are we to the point at which Powell gets an apology for the abuse he took over not lowering the rates?
Posted on 7/29/26 at 3:07 pm to Lsu101205
quote:
I love where I live, but there is no way in this world my home should be worth 450k
If that is the price the marginal buyer is willing to pay then, like it or not, that is its worth.
Posted on 7/29/26 at 3:09 pm to Penrod
No we aren’t, he had opportunities to lower rates and didn’t. The Fed created the illusion of controlling inflation not market forces
Posted on 7/29/26 at 3:10 pm to stout
A person trying to buy a home will find it a little more difficult due to home prices increasing slightly more than wages, but he’ll find it even more easy due to wages increasing faster than everything else.
In short, it’s easier to buy a home because the extra amount you pay for the home is less than the savings you have on all of your other purchases.
In short, it’s easier to buy a home because the extra amount you pay for the home is less than the savings you have on all of your other purchases.
Posted on 7/29/26 at 3:11 pm to Warboo
quote:
We still like 2.5 years in this term.
What?
Posted on 7/29/26 at 3:12 pm to Rip Torner
quote:
No we aren’t, he had opportunities to lower rates and didn’t.
If he had lowered rates we would be frantically raising them to get to where they are now - a point at which Trump’s hand selected guy won’t cut them.
Posted on 7/29/26 at 3:14 pm to Bass Tiger
quote:bought our first and only house in a quiet older neighborhood in 1995 for $68,000 - median price nationwide for existing homes was $115k
My first home loan in 1990 was over 9% and I didn't see an interest rate below 7% until 1998.
probably put another $100k into it over the last three decades, mainly in renovations and repairs (plus converting the standalone garage into an office/apartment)
according to Zillow, its worth an estimated $558,000 now
Posted on 7/29/26 at 3:15 pm to ronricks
quote:
SDVCuck told us mortgage interest rates would be in the 4's if Trump was re-elected
Maybe they will be.
Posted on 7/29/26 at 3:18 pm to Penrod
quote:
In short, it’s easier to buy a home because the extra amount you pay for the home is less than the savings you have on all of your other purchases.
Dude, being able to buy more ground beef for an hour of work than someone could in 1990 doesn’t automatically make a house more affordable. You still have the home price, mortgage rate, insurance, property taxes, maintenance, and down payment.
I see what you are trying to get at but it's a huge oversimplification on your part and a little bit of dummy math.
Posted on 7/29/26 at 3:20 pm to Lsu101205
Bought a house in 2020 for 230k. Government sends me a property tax saying my house is worth 380k so I pay taxes at THAT rate.
What happens if I don't sell my house for that much? My taxes have gone up the full 10% every year for 5 years now.
Is my house REALLY worth what they are saying?
What happens if I don't sell my house for that much? My taxes have gone up the full 10% every year for 5 years now.
Is my house REALLY worth what they are saying?
Posted on 7/29/26 at 3:49 pm to Lsu101205
quote:
Homes were also around 120k back then, not the hyper inflated 400k starter homes you'll find in most metro areas
People bought 1500sq ft starter homes.
Now people out of school want 3000sq ft with every upgrade available that they see on TV makeover shows.
Posted on 7/29/26 at 3:58 pm to Roll Tide Ravens
my current rate is 2.25%
Its awesome but i feel stuck.
Its awesome but i feel stuck.
Posted on 7/29/26 at 3:59 pm to Bass Tiger
quote:
Current 30 year mortgage is 6.6%.
My first home loan in 1990 was over 9% and I didn't see an interest rate below 7% until 1998.
Most people don’t know this. The 30 year fixed didn’t drop below 7% until 2002 and it didn’t hit 5% until 2009 during QE. The mortgage rates that people saw from 2009 to 2022 are historically extremely low. It’s a gulley.
Mortgages trade like bonds. When rates go down, prices go up, and vice versa. The homes that those mortgages buy follow the same pattern.
Cheap money for 13 years got us here. All that lower rates will do is have more buyers enter the housing market who can’t afford the lowest priced homes now. The more buyers who start to be able to afford the lowest priced homes will prop up those prices.
Interest rates are demand side tools. The only fix that could get home prices down without a massive market correction is to increase supply. That’s it.
Lower rates will not make home prices drop.
Posted on 7/29/26 at 4:00 pm to Roll Tide Ravens
November is going to hurt
Posted on 7/29/26 at 4:06 pm to TerryDawg03
Cheap money for 13 years didn’t get us here no matter how many times some on this board insist on believing it, out of control government spending got us here, nothing more.
Posted on 7/29/26 at 4:57 pm to stout
quote:
Dude, being able to buy more ground beef for an hour of work than someone could in 1990 doesn’t automatically make a house more affordable. You still have the home price, mortgage rate, insurance, property taxes, maintenance, and down payment.
I see what you are trying to get at but it's a huge oversimplification on your part and a little bit of dummy math.
Also, by other analyses I've seen I would suspect that buying power is largely bolstered by consumer electronics getting vastly cheaper due to A) maturity of the sector B) Chinese and others production.
Posted on 7/29/26 at 5:00 pm to wdhalgren
quote:
Cool
That is one of many factors affecting affordability now vs 36 years ago
Low interest rates can also impact affordability. Keeping interest rates too low for the last 36 years is one of the factors that have driven home prices to high levels. In the early 90's we had a mild recession and the Fed cut interest rates and kept them low for a good long while. So, we had a stock market bubble which was followed by a stock market crash, which led to more very low interest rates. Then we had a housing bubble and a housing crash, followed by very low interest rates and debt monetization. Then another housing and stock bubble, followed by a very brief crash and more debt monetization, which was of course followed by more inflation.
Any attempt to keep wages apace with inflation will trigger wage price spirals and make the inflationary monetary cycles worse. In other words, you can't fix affordability problems by lowering interest rates. Eventually, the cycle of boom bust has to end by clearing bad debt, and all that entails. Otherwise, inflation becomes uncontrollable.
I was going to get in the weeds a bit earlier with this discussion but I think he's in the real estate biz so he has a vested interest in cheap money being available for home loans and over priced homes.
Posted on 7/29/26 at 5:07 pm to Roll Tide Ravens
We are in one of the more unique house price situations that I can recall.
Plenty of people want to sell and move, but they want to sell at a price to cover the massive rate difference if buying a new place. It’s a “stuck” market until rates go down to mid 5s or probably lower IMO.
Plenty of people want to sell and move, but they want to sell at a price to cover the massive rate difference if buying a new place. It’s a “stuck” market until rates go down to mid 5s or probably lower IMO.
Posted on 7/29/26 at 5:15 pm to Roll Tide Ravens
My 3.125 rate shaw is a Beaut.
Posted on 7/29/26 at 6:03 pm to Roll Tide Ravens
lol. So if Warsh isn’t making changes…what purpose did replacing Powell serve?
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