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U.S. mortgage interest rates jump to 7.16%, highest since 2001

reuters.com

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Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#281

Post by Beldin »

diogenescynic wrote: post #54
algoatecorn wrote: post #44

Earlier quoted context omitted.

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…

>Current renters will have lower potential to save on a monthly basis It's cheaper to rent than to buy in many markets and if you own you have to factor in maintenance, property taxes, and insurance. It's definitely not as black and white as you're making it out to be.

> if you own you have to factor in maintenance, property taxes, and insurance.

Around here, if you rent, your landlord factors those things into the rental price. Admittedly not necessarily the insurance; that typically is just a requirement of the lease.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#282

Post by DontchaKnowit »

game_the0ry wrote: post #274
DontchaKnowit wrote: post #242

Earlier quoted context omitted.

I understand it isn't ideal that a new homeowner would have the price if their house collapse after purchasing, but if you never intend to sell, what possible harm could that do to you? For instance- I could afford 3 of my current mortgages currently, so if I have to move but would get wreck on the price if I sold currently, all I have to do is go back to renting and rent my house out. So what harm could this do to m…

> but if you never intend to sell, what possible harm could that do to you? Operative word being if > So what harm could this do to me? It will harm those around you. I advise you look at yourself as a part of the American society you participate in - acting like we are separate is the source of many of our problems.

I'm not saying "welp doesn't affect me so fuck it"

I'm just seeing a lot of people referring to deluded new homeowners who are telling themselves they're gonna be fine when really their finances will be ruined - or something to that effect. This comment is me 1) saying there are plenty of people who were aware of the potential for falling housing prices and got into the market anyway because the reward is greater than risk and 2) putting feelers out to see if I'm part of the deluded camp or if my assessment is correct.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#283

Post by diogenescynic »

Beldin wrote: post #281
diogenescynic wrote: post #54

Earlier quoted context omitted.

>Current renters will have lower potential to save on a monthly basis It's cheaper to rent than to buy in many markets and if you own you have to factor in maintenance, property taxes, and insurance. It's definitely not as black and white as you're making it out to be.

> if you own you have to factor in maintenance, property taxes, and insurance. Around here, if you rent, your landlord factors those things into the rental price. Admittedly not necessarily the insurance; that typically is just a requirement of the lease.

The price to rent ratio compares the price to rent vs own. It’s definitely cheaper to rent than to own in many places. You can also get rent control in many cities so comparing renting to owning is going to vary with the specific situation.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#284

Post by antisthenes »

caeril wrote: post #271
antisthenes wrote: post #259

Earlier quoted context omitted.

Frankly, I don't know any peers (millenials), that are able to afford anything more than a starter home anyway. That seems like a very outdated concept for people who are very well-off. I mean, most of us aren't even able to afford to buy a home, let alone casually upgrade to a "forever" home. In my high COL area, even starter homes are only affordable for top 20 percentile earners. Everyone else either lives with ro…

> don't know any peers (millenials), that are able to afford > In my high COL area Yes, it is a problem that Millenials refuse to live anywhere other than Instagram-worthy locations. God, what would Becky think if I posted a TikTok from flyover country? And imagine shopping at Walmart, I would literally die frfr no cap. How we could ever solve this vexing self-inflicted problem, I have no idea. What a quandary. > see…

Thank you for the low-effort snarky response. I wasn't aware that starter homes in my area built in the 1950s are an instagram-worthy location.

Probably because I don't even use Instagram, so I wouldn't know what it looks like to be in one.

> And imagine shopping at Walmart, I would literally die frfr no cap.

I'm glad you were able to find Urban Dictionary on the internet, and not get lost. If only I was such a digital native like you.

> Yes, much like the outdated concept that building tangible wealth in underpriced assets is worth the cost of a slightly lower number next to the heart icon. Fucking boomers, amirite?

Yes, you are right. Not sure what about, though, since I'm not going to waste any effort parsing your word salad.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#285

Post by antisthenes »

floxy wrote: post #276
antisthenes wrote: post #259

Earlier quoted context omitted.

Frankly, I don't know any peers (millenials), that are able to afford anything more than a starter home anyway. That seems like a very outdated concept for people who are very well-off. I mean, most of us aren't even able to afford to buy a home, let alone casually upgrade to a "forever" home. In my high COL area, even starter homes are only affordable for top 20 percentile earners. Everyone else either lives with ro…

$99,000 -- 4 bed rm, 3000 sq. ft. https://www.zillow.com/homedetails/319-N-11th-St-Nebraska-Ci... ? $125,000 -- 4 bd, 4230 sq. ft. https://www.zillow.com/homedetails/31237-County-Highway-62-U... ? $80,000 - 4 bd, 1547 sq. ft. https://www.zillow.com/homedetails/711-W-North-St-Norton-KS-... $149,900 - 5 bd, 1980 sq. ft, on 10 acres https://www.zillow.com/homedetails/N4675-State-Highway-52-Br... $104,900 -- 4 bd, 2300 s…

Now go to each of those locations and see how muchs jobs pay.

Zillow links don't prove whatever point you were trying to make with the low effort post.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#286

Post by [deleted] »

antisthenes wrote: post #285
floxy wrote: post #276

Earlier quoted context omitted.

$99,000 -- 4 bed rm, 3000 sq. ft. https://www.zillow.com/homedetails/319-N-11th-St-Nebraska-Ci... ? $125,000 -- 4 bd, 4230 sq. ft. https://www.zillow.com/homedetails/31237-County-Highway-62-U... ? $80,000 - 4 bd, 1547 sq. ft. https://www.zillow.com/homedetails/711-W-North-St-Norton-KS-... $149,900 - 5 bd, 1980 sq. ft, on 10 acres https://www.zillow.com/homedetails/N4675-State-Highway-52-Br... $104,900 -- 4 bd, 2300 s…

Now go to each of those locations and see how muchs jobs pay. Zillow links don't prove whatever point you were trying to make with the low effort post.

[deleted]

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#287

Post by epgui »

fundad wrote: post #244
jakemoshenko wrote: post #78

Earlier quoted context omitted.

If that's true, why did the fed stop hiking rates in 2019?

Fed chair’s job was threatened and the norm was broken (for Rs).

That's a really bold statement, {{citation needed}} from reliable source.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#288

Post by bjornsing »

simantel wrote: post #229
bjornsing wrote: post #155

Earlier quoted context omitted.

Why only to $230,000? Wouldn’t the price have to drop to 400*(2/9)=89k to keep mortgage payments the same?

Because some of your payment goes to principal, it's not all interest.

Of course. Thanks. Didn’t realize that was standardized. Here in Sweden the terms are government mandated and different depending on your salary and money down.

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#289

Post by hackerfromthefu »

skapadia wrote: post #34
ed25519FUUU wrote: post #22

There’s a ticking clock right now for 5/1 ARM. If rates stay elevated then many are going to be out of a home.

Sure, but who was opting for an ARM in the last 5 years?

Pretty much the rest of the world except america

Re: U.S. mortgage interest rates jump to 7.16%, highest since 2001

#290

Post by andsoitis »

fundad wrote: post #243
andsoitis wrote: post #129

Earlier quoted context omitted.

> It can't be a winning strategy. The Fed is independent in the sense that monetary policy and related decisions are made autonomously and are not subject to approval by the federal government. However, its governors are appointed by the President and must be confirmed by Congress. (citation: investopedia) In parallel, when you're running the government, ideally you're running for the long-term well being of the coun…

The former president threatened the fed chair to keep rates low. This president begs for “L”s over norms that no longer exist.

If you have to resort to "threatening" or "begging", isn't that a strong indicator of independence?
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