61–70 of 297 posts
This will pressure prices down presumably which is a good thing for cash buyers but basically no one else.
Earlier quoted context omitted.
you think people are going to pay mortgages they are massively underwater on? This also ignores the fact that the Fed's stated goal with raising interests rates is to increase unemployment to slow inflation. You are already seeing the results in quarterly financials. Once layoffs start happening people won't have an option but to sell when they can't make payments
Good point, and I wonder if the term "jingle mail" (mailing the bank your house keys instead of a monthly mortgage check) is going to make a comeback.
I saw someone point out that this interest rate hike will effectively nullify any bubble breaks. House prices could drop over 30% (the amount it dropped in the last housing bubble popping) and the monthly mortgage payment will still be more than it was before. A terrible time to be looking for a house.
A good time to be looking for a house. A terrible time to be looking for a mortgage.
If rates go from a low of 2% up to, say, 9%, then in order to keep the mortgage payment the same, the price of a $400,000 house would have to drop to around $230,000. This assumes a 30-year fixed rate mortgage, and the details will vary depending on money down, etc. but the basic fact remains that house prices will need to fall by a lot, down to levels of 5 years ago or more, before the current interest rate hiking c…
Most of the people I speak to who locked in Current renters will have lower potential to save on a monthly basis, only to get 30-40% off on their first home with a >7% interest rate. If you sum the lost savings from rent plus the additional interest payment, it is uncertain whether that is the best strategy. That is also assuming real estate prices in certain regions wont hold stronger value, which they probably will…
Well great. If you didn't buy a house last year, you won't get another chance for 10-15 years.
Earlier quoted context omitted.
A lot of people simply won't sell in that situation which is going to further constrain supply.
There isn’t a supply issue. There is a corporations buying property issue.
I saw someone point out that this interest rate hike will effectively nullify any bubble breaks. House prices could drop over 30% (the amount it dropped in the last housing bubble popping) and the monthly mortgage payment will still be more than it was before. A terrible time to be looking for a house.
A good time to be looking for a house. A terrible time to be looking for a mortgage.
If rates go from a low of 2% up to, say, 9%, then in order to keep the mortgage payment the same, the price of a $400,000 house would have to drop to around $230,000. This assumes a 30-year fixed rate mortgage, and the details will vary depending on money down, etc. but the basic fact remains that house prices will need to fall by a lot, down to levels of 5 years ago or more, before the current interest rate hiking c…
Because it isn't going to happen. The people who invested in houses years ago locked in a low interest rate, and will happily just rent them out to cover the cost until they appreciate again.