Earlier quoted context omitted.
Sacrificing 10% of your life to air travel, plus massive fuel waste, doesn't sound nice
Point is, you can't expect to have your cake and eat it too
You mean, like the previous generation did?
The Fed now owns nearly 1/3 of all U.S. mortgages
111–120 of 346 posts
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#112I would be curious to see analysis for what home prices would be with 0 Fed intervention. Also, I don't understand how millennials aren't supposed to see this figure and immediately feel a sense of rejection, that the housing market is some form of a pyramid scheme, where you had to get in early to have a chance.
I would be curious to see analysis for what home prices would be with 0 Fed intervention. It is an interesting thought experiment. From what I've gathered, any intervention by the government to make housing more accessible, just gets priced in pretty quickly, removing the benefit. For example, FHA offering 5% down payments instead of a standard 20%, just means every first time buyer can now pay 15% more (approximatel…
when people are living (and budgeting) paycheck to paycheck, with low interest rates, the prices go up a bit more than 1:1. It becomes all about what monthly payment you can afford.
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#113I would be curious to see analysis for what home prices would be with 0 Fed intervention. Also, I don't understand how millennials aren't supposed to see this figure and immediately feel a sense of rejection, that the housing market is some form of a pyramid scheme, where you had to get in early to have a chance.
I would be curious to see analysis for what home prices would be with 0 Fed intervention. It is an interesting thought experiment. From what I've gathered, any intervention by the government to make housing more accessible, just gets priced in pretty quickly, removing the benefit. For example, FHA offering 5% down payments instead of a standard 20%, just means every first time buyer can now pay 15% more (approximatel…
> In hot markets, the prices rise quickly to reflect that and everyone is in the same position as before.
Except for the government's budget, right ?
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#114Earlier quoted context omitted.
Point is, you can't expect to have your cake and eat it too
You mean, like the previous generation did?
Worth noting that [in the US] a large part of the previous generation ended up living in cheaper suburbs because of flight from urban areas, which also made those urban areas cheaper.
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#115Earlier quoted context omitted.
We are having precisely the same convo in my family, in the Czech republic. My wife is from Prague. A gem of a city, but unaffordable. Too much speculative capital from Russia, China etc. Being a slave of a mortgage until 70 is a ghastly prospect. I am from Ostrava, a post-industrial city where property prices are about a third of Prague level. Incomes are lower, but not that much lower. For an accountant (my wife is…
If you can rent significantly cheaper than total cost of servicing loans etc, consider investing the difference in index funds and rent as cheap as you can. It might be a good bet, especially if speculation in housing is slowing down compared to the last 20-30 years.
It's possible the problem isn't speculation, but the rate of return on capital vs the rate of return on labor.
If capital dominates, you're going to run into scenarios where it's fundamentally impossible to ever afford scarce goods that generate returns, because someone who started with more capital will now have an even larger delta with you, and is therefore able to outbid you.
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#116Earlier quoted context omitted.
> Also, I don't understand how millennials aren't supposed to see this figure and immediately feel a sense of rejection Millenial here. 100% agreed with this. Feels like a big blind spot in the boomer crowd. They don't seem to see the seething, roiling, overpowering resentment their entire generation is receiving from many, many people that currently don't have much power in society . A politician wants to win office…
I'm surprised #1 isn't proposed more. It's not really even that radical when you consider that the Overton window now includes completely eliminating student debt.
Source for claim?
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#117By protecting the price of real estate through mortgage purchases, the Fed is undermining the legitimacy of private property and the concept of private ownership. This is not going to end well.
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#118Earlier quoted context omitted.
Not to be snarky or obvious, but you should do what the people in the past did - find a better place to live that allows you to buy a home more easily. That's one of the reasons why there was a big migration to places like LA. Lots of jobs and cheap land to build on. To me, SF is like NYC. Unless you got in early or are one of the 1%, it's not a great place to try and build a life in (if you're looking to own a home)…
Housing (and construction) prices have been ballooning out of control everywhere for the last several years. Both major cities (DC, Boston, Portland, Seattle, Chicago, LA, Denver, San Diego) and secondary cities (Boise ID, Grand Rapids MI, many more) are all totally unaffordable. I’ve spent hundreds of hours researching different areas over the last year. Looking at sold homes from just 2-3 years ago, many seem like…
What data are you looking at? Median home price for Chicago (where I live incidentally) is 229,000, for Dallas is 225,000, for Houston is 197,000 according to this source [0] and those are the 3rd, 4th, and 5th largest metropolitan statistical areas in the United States and Dallas and Houston have both grown a whopping 19% in the past decade [1]. Trick is, they all still have plenty of land to build new homes on to keep up with demand growth.
[0]: https://www.kiplinger.com/article/real-estate/t010-c000-s002...
[1]: https://en.wikipedia.org/wiki/List_of_metropolitan_statistic...
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#119I would be curious to see analysis for what home prices would be with 0 Fed intervention. Also, I don't understand how millennials aren't supposed to see this figure and immediately feel a sense of rejection, that the housing market is some form of a pyramid scheme, where you had to get in early to have a chance.
I would be curious to see analysis for what home prices would be with 0 Fed intervention. It is an interesting thought experiment. From what I've gathered, any intervention by the government to make housing more accessible, just gets priced in pretty quickly, removing the benefit. For example, FHA offering 5% down payments instead of a standard 20%, just means every first time buyer can now pay 15% more (approximatel…
>just means every first time buyer can now pay 15% more (approximately) for a house
Wait, what? Wouldn't it mean that a pool of prospective buyers that couldn't afford 20% but can afford 5% are now able to buy a house? That's a shift in the structure of the market rather than just a change being "priced in" for the same set of buyers.
>In hot markets, the prices rise quickly to reflect that and everyone is in the same position as before.
I would think this is the kind of question where we need data. I like to think I respect the exercise of thought experimenting more than your average person, but in this case, it seems to illustrate how thought experiments serve to answer questions by restating their core assumptions rather than exposing them to challenges in the way data would.
Re: The Fed now owns nearly 1/3 of all U.S. mortgages
#120>> Morgan Stanley analysts pointed out in late March that the buying was running at eight times the pace seen in prior episodes of Fed purchasing under programs known as quantitative easing.
8x increase over QE is crazy. Is that 8x mortgage bonds or 8x bonds in general?