Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Mortgage Rates Hit 5.78%, Highest Level Since 2008

wsj.com

Post reply on HN
Print view View original

21–30 of 46 posts

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#21

Post by listenallyall »

fatnoah wrote: post #6
treyfitty wrote: post #4

For reference, historically, mortgage rates were greater than 6%. "Since 2008" isn't that meaningful, other than to imply "since QE regime began."

The mortgage I got (FHA) in July of 2008 was 6.25%. The house I grew up in, had a mortgage at 9%, and was only that low because my parents won a contest at the local bank.

On the other side of the coin, you used to be able to earn 6, 7, 8%, maybe even more, just by parking money in a savings account. I'd love to find a bank today offering even just 3%.

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#22

Post by sentirist »

rhinoceraptor wrote: post #12
leekh wrote: post #2

What's going to give first? Interest rates? House Prices? I was on the market to buy a place. First time home owner jitters, but interest rates started to rise fast. Buying power dropped so much that I'm dropped out. At these rates, I really need the price to drop by 20%-ish. I'm sitting on cash and it feels like shit. I wonder how other people feel.

I think it depends on if real estate is still being devoured by investment groups. And during high inflation, it doesn't seem like they're going to stop parking their money in homes any time soon. And since they can buy with cash, interest rates don't matter to them.

I think that was a temporary market distortion caused by too much QE and pent up demand from COVID making single family homes more liquid than they would have been otherwise.

Pooling money to buy single family homes only makes sense to me when the entire bond and equity market is over priced. Surely, there is a ton of capital that wishes it was liquid right now and not in portfolios of slightly over priced single family homes with liquidity drying up by the moment.

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#23

Post by dominotw »

noobermin wrote: post #15
rhinoceraptor wrote: post #12

Earlier quoted context omitted.

I think it depends on if real estate is still being devoured by investment groups. And during high inflation, it doesn't seem like they're going to stop parking their money in homes any time soon. And since they can buy with cash, interest rates don't matter to them.

How much influence do investment groups really have on the housing bubble?

No one really knows . I've seen figures from 10% all the way to 70% in some markets.

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#25

Post by EricE »

noobermin wrote: post #15
rhinoceraptor wrote: post #12

Earlier quoted context omitted.

I think it depends on if real estate is still being devoured by investment groups. And during high inflation, it doesn't seem like they're going to stop parking their money in homes any time soon. And since they can buy with cash, interest rates don't matter to them.

How much influence do investment groups really have on the housing bubble?

Someone has to be buying up all those houses in CA that the people fleeing the state are still selling at inflated prices.

If the net population of a state has dropped enough for them to loose at least one seat in the house of representatives, but houses are still selling for high prices than logically it's not people buying up those houses.

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#28

Post by shawabawa3 »

dominotw wrote: post #24
jnwatson wrote: post #13

I’m closing next week, so I gander this is the top of the housing market.

curious about logic behind buying at ATH.

Historically buying real estate at an all time high has been a good investment

Of course nobody can know if it's the case this time

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#29

Post by lupire »

sentirist wrote: post #17
leekh wrote: post #2

What's going to give first? Interest rates? House Prices? I was on the market to buy a place. First time home owner jitters, but interest rates started to rise fast. Buying power dropped so much that I'm dropped out. At these rates, I really need the price to drop by 20%-ish. I'm sitting on cash and it feels like shit. I wonder how other people feel.

The FRED 30 year fixed average puts things in perspective. https://fred.stlouisfed.org/series/MORTGAGE30US We have had a historic move up in rates but that is coming out of COVID with rates at levels that don't even make sense to lend at for 30 years with out the Fed. It would seem hard to believe housing prices are not overvalued with that artificially low rate regime but it is also hard to see housing prices crash…

Housing isn't overvalued. Housing is in shortage, so it priced at the maximum of affordability. Either you pay the landlord or previous owner (low interest) or you pay a bank (high interest), but either way you pay all you can.

Re: Mortgage Rates Hit 5.78%, Highest Level Since 2008

#30

Post by lupire »

EricE wrote: post #25
noobermin wrote: post #15

Earlier quoted context omitted.

How much influence do investment groups really have on the housing bubble?

Someone has to be buying up all those houses in CA that the people fleeing the state are still selling at inflated prices. If the net population of a state has dropped enough for them to loose at least one seat in the house of representatives, but houses are still selling for high prices than logically it's not people buying up those houses.

Incorrect. CA population grew 2010-2020, but other states grew faster.
Post reply on HN