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Started By
Message
re: The most political biased Federal Reserve Chairman in the history of the Federal Reserve.
Posted on 1/15/26 at 9:31 am to Tantal
Posted on 1/15/26 at 9:31 am to Tantal
quote:
You'll either pay a higher price for the house with a lower interest rate, or a lower price for the house with a higher interest rate. In terms of actual house payment, it's probably a wash.
This.
0
Posted on 1/15/26 at 9:31 am to Powerman
quote:
And when rates go down the list prices tend to shoot up
Rates went to 9% and values still went up
Posted on 1/15/26 at 9:34 am to Timeoday
Posted on 1/15/26 at 9:40 am to CaptEasy
quote:
The higher the interest rate, the higher your mortgage payment will be,
Correct.
quote:
If they lower interest rates, you will pay less for your house.
Not necessarily. If the market heats up the payment difference between a medium and low interest payment may be eaten up by higher purchase prices as demand rises and supplies tighten.
The sales price of a home is not static.
Posted on 1/15/26 at 9:50 am to SDVTiger
quote:He used the word correctly, dumbass. You didn't.
You should send that the JPow not me
You believe transitory means "brief." It doesn't.
It means "not permanent."
Posted on 1/15/26 at 10:05 am to SDVTiger
quote:Link??
Rates went to 9% and values still went up
30 year fixed mortgage rates have not been 9% since the early 1990's and were headed down.
And those rates were transitory. (There's that pesky word again that you don't know the definition of.)
By 1993 the 30 yr rate was just over 7%.
You continue to fabricate your own facts...
This post was edited on 1/15/26 at 11:30 am
Posted on 1/15/26 at 10:18 am to LSURussian
quote:
Link??
My gosh you are like the annoying nagging ex wife
8% rates with Fannje
NON QM rates hit 10%
Under the admin you voted for
Posted on 1/15/26 at 10:38 am to Ten Bears
quote:
So when interest rates were low during COVID, housing prices went down right? All because the mortgage prices were lower, right?
I will try to dumb it down for you. You do realize during COVID that lumber prices sky rocketed adding quite a bit to the cost of the home. Not only that other building materials were much higher. I knew this since I was part owner in a company that built homes.
Posted on 1/15/26 at 10:50 am to Timeoday
quote:I don't disagree that Powell hasn't been great, but this is a dumb talking point. Lowering interest rates will have the effect of raising house prices...which will also "inflate the cost of owning houses".
Powell is intentionally inflating the cost of owning houses by keeping interest rates higher than they should be, all part of his effort to sabotage Trump, at the cost of the American people.
The EXACT problem is not enough houses.
Posted on 1/15/26 at 10:59 am to KiwiHead
quote:When you attempt to get a mortgage loan, the lending institution looks at the mortgage amount and calculates the monthly payment. Your total payments can be 40% of your gross monthly income. Then they subtract your current payments from the 40% calculation. If the mortgage payment amount is more than the 40% calculation (less your monthly payments) then you won't qualify for the loan.
Explain how keeping rates high is inflating the cost of houses?
Example.
A couple has monthly gross income 10,000, student loan payment 600, wife's care payment 450, husband's car payment 400 and credit card payment 120.
40% of 10,000 is 4000. Combined payments 600+450+400+120=1570. Maximum payment is 4000-1570=2430.
The couple in the example above looking at a 400k home at 6.5% will have a payment of 2528.27 (principal and interest only). The couple will not qualify for the loan.
The same couple looking at the same house at 6% interest will have a payment of 2398.20 and WILL qualify for the loan.
Posted on 1/15/26 at 11:16 am to KiwiHead
quote:
Explain how keeping rates high is inflating the cost of houses?
Really? You should see yourself out of the adult conversations.
Posted on 1/15/26 at 11:19 am to CaptEasy
That makes no sense to overall asset price.
How is a lower payment going to make an overall inflated asset any cheaper in Price? It just means that the assets overall price either stays the same or moves upward. A lower rate does not take an inflated price from 400 down to 300. It stays at 400 and probably starts to move upward beyond 400
If a builder sees that the lower rate could entice buyers, he's not going to bring his price down.
How is a lower payment going to make an overall inflated asset any cheaper in Price? It just means that the assets overall price either stays the same or moves upward. A lower rate does not take an inflated price from 400 down to 300. It stays at 400 and probably starts to move upward beyond 400
If a builder sees that the lower rate could entice buyers, he's not going to bring his price down.
Posted on 1/15/26 at 11:26 am to SDVTiger
quote:I asked for a link which supports your opinion and you only provide more opinions. No link & nothing quoted.
My gosh you are like the annoying nagging ex wife
8% rates with Fannje
NON QM rates hit 10%
Under the admin you voted for
You're worthless...
Posted on 1/15/26 at 11:28 am to RollTide4547
But that does not address the price of the asset that is overall inflated. The 400K house is still 400K. You'll still have price inflation at the lower rates as the borrower who could afford the house at 6% all of a sudden discovers if the rate is 5.5 he can get a more desirable house at 5.5%.
Your not making things more affordable, you're just masking it. The price still goes up. If you lower the rates builders and sellers of existing stock will see it as a call to list at higher prices so your example fails as the asking price of the asset goes up....so any savings at 6% get eaten up going forward by the increase in price of the asset.
Your not making things more affordable, you're just masking it. The price still goes up. If you lower the rates builders and sellers of existing stock will see it as a call to list at higher prices so your example fails as the asking price of the asset goes up....so any savings at 6% get eaten up going forward by the increase in price of the asset.
Posted on 1/15/26 at 11:35 am to LSURussian
quote:
asked for a link which supports your opinion and you only provide more opinions. No link & nothing quoted.
Do you need me to wipe your old arse as well?
You get factual links provided then cry like an ex
This is you in a nutshell. "Me- Hey the sky is blue today."
"Cuckrussia - No actually theres a tint of green to it!! You are fabricating!"
Posted on 1/15/26 at 11:40 am to SDVTiger
quote:Still no link supporting your latest lie.
Do you need me to wipe your old arse as well?
You get factual links provided then cry like an ex
This is you in a nutshell. "Me- Hey the sky is blue today."
"Cuckrussia - No actually theres a tint of green to it!! You are fabricating!"
Whenever you are challenged to support one of your bullshite, lying posts you immediately respond with personal attacks and more made up bullshite.
Posted on 1/15/26 at 11:42 am to SDVTiger
When in the last 25 years have the rates been anywhere near 9% for a 30 year fixed conforming or FHA / VA loan?
Stick to fishing boat talk
Stick to fishing boat talk
Posted on 1/15/26 at 11:44 am to LSURussian
quote:
Still no link supporting your latest lie.
So thats a yes i do need to wipe your old arse
https://www.bankrate.com/mortgages/historical-mortgage-rates/
quote:
By 2022, the Federal Reserve began raising its benchmark interest rate to cool pandemic-spurred inflation, and mortgage rates followed suit. Fast-forward to October 2023, and the 30-year mortgage rate broke through 8% — an average not seen since 2000.
https://www.cnbc.com/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html
Have to throw in your favorite source
Now go eat your pudding
This post was edited on 1/15/26 at 11:55 am
Posted on 1/15/26 at 11:45 am to KiwiHead
quote:
When in the last 25 years have the rates been anywhere near 9% for a 30 year fixed conforming or FHA / VA loan?
2023
Posted on 1/15/26 at 12:00 pm to CaptEasy
quote:This is exactly backward. For example, if the market will bear $1000 per month in total payment... if rates are high (just sample numbers):
The higher the interest rate, the higher your mortgage payment will be,
If they lower interest rates, you will pay less for your house.
$300 interest
$700 principle (price of house / number of payments)
if rates are lower:
$200 interest
$800 principle (price of house / number payments)
Your mistake is thinking that sellers keep prices consistent. They don't. Same reason you'll see lower house prices in places with higher property taxes.
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