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Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

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Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#251

Post by mbg721 »

antiframe wrote: post #229
Beldin wrote: post #129

Earlier quoted context omitted.

Around here, monthly rent is as high as or higher than mortgage payments. With mortgage payments, you accrue ownership (for the "standard" mortgages around here). If you expect house prices to remain stable or increase during your residency in a property, ownership financially makes more sense.

Why do people compare monthly mortgage amount and rent? It misses several big elements to housing costs: taxes, maintenance, closing costs, realtor costs, and opportunity cost of the money tied up. Renting vs buying comparisons need to account for lot more than those two numbers but that's all I see posted most of the time.

Maintenance is a big one. When you pay for an apartment, you're also paying for the landlord to fix plumbing/electrical/whatever issues.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#252

Post by ant6n »

hamter wrote: post #69
_v7gu wrote: post #53

Earlier quoted context omitted.

No, no. It's the foreigners' fault. Hypocrisy and xenophobia will fix everything without having to create actually livable cities where people aren't slaves to cars.

don't worry we're happy to do both transit and xenophobia in canada (unless the next administration cancels the transit plans) (they will)

In many places, Canada also does celebrating diversity and living car-culture very well.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#253

Post by davio »

cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

Refinance applications were down 70% compared to year ago. Combined with low home inventory, the mortgage industry looks pretty grim.

I'm expecting rates to reverse at some point. Mortgage companies will either need to compete to get some business or just give up.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#254

Post by mring33621 »

lmt55 wrote: post #91
hans1729 wrote: post #19

Earlier quoted context omitted.

I mean, it's not really a burst, we're just hearing the hissing noise of the obvious leak. The true demand from people with the intend to actually live in the estates has been constantly decreasing since around 2000; the real salarys dropped since then, so did the buying power. The only reasons people found buyers at x3-x10 (!) prices were a) that there is a class of people wealthy enough to still afford the purchase…

I think you have missed a source of demand, and I think it's important. As housing became more and more expensive to young professionals, some people in this group have worked harder and harder to buy property, even to the point where it no longer seems rational. For example, parents taking a lot of wealth out of their retirement savings or their own homes to assist children in buying. Professionals are working more…

Thank you for your comment. I think this is interesting:

"Higher rates will make current prices unsustainable. As soon as they correct to the point where monthly payments are back to what they were last year, there will be buyers, only too happy to overextend themselves to get out of renting."

So, higher rates are effectively a transfer of wealth from homeowners to banks? How does this serve to combat the current inflation issue?

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#255

Post by onlyrealcuzzo »

llampx wrote: post #152
cammikebrown wrote: post #15

Earlier quoted context omitted.

It's pushing 6% if you have worse credit (700-750). But don't worry about that, NINJA loans are back: https://i.redd.it/wnzuveooo5w81.jpg

No Income, No Job anything?

I would hope if you have no income you don't have a job!

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#256

Post by [deleted] »

JetAlone wrote: post #90

Buying a home mortgage is signing yourself over to a lifetime of servitude and uncertainty if you lose your income stream. Buy a property out of pocket to live in and make the most of a DIY life at a fraction of the cost and an odd stress differential, or just keep renting and be agile enough to roll with the punches.

[deleted]

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#257

Post by afavour »

tannedNerd wrote: post #249
sokoloff wrote: post #240

Earlier quoted context omitted.

Exactly. If I had a choice to invest at arms-length at a company who had good underwriting standards but loaned only based on liquid assets and W-2 income or in a company who very carefully underwrote loans by looking in careful detail at every applicants’ unique situation, I’m more inclined to invest in the former.

And now your company you invested is worth half because they were too strict on loaning and have entered the death spiral where they aren’t bringing enough new loans in and fold or get bought out for much less then your original stock price.

What percentage of mortgages are given to self employed folks? Genuine question, I have no idea. But I wouldn’t assume it’s enough that it could rescue any company from a death spiral.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#258

Post by matwood »

lotsofpulp wrote: post #195
matwood wrote: post #177

Earlier quoted context omitted.

> I just want to live somewhere Same. Which is exactly why I bought a house in 2011. In hindsight it was the perfect time, but at the time the market was still bumpy. At the end of the day, I had a stable job and needed to live somewhere. > I make enough money not to worry about rent, even if it should substantially increase The house next door to me rents for 2.5x my mortgage. My salary has continued to go up, while…

>Same. Which is exactly why I bought a house in 2011. In hindsight it was the perfect time, but at the time the market was still bumpy. At the end of the day, I had a stable job and needed to live somewhere. And you were more likely to be able to because it was 2011. Fewer people can do the same today, at least at a similar comfort level of cost of house to income ratio.

Sure, but what about 1-2-3 years ago? The person I responded to said they never saw the point of taking on 30 years of debt, so my response was in more general terms.

Also, 2011 was still very uncertain. Would the market continue to go down, and would I keep my job were all real questions.

Is today a questionable time to buy? Probably, but what type of correction is needed in a ~7% inflationary environment for it to shift into an ok time to buy? 10%? 20%?

The point is there is always uncertainty and only in hindsight did 2011 look like a great time.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#259

Post by onlyrealcuzzo »

refurb wrote: post #172
elevaet wrote: post #113

Earlier quoted context omitted.

It's nuts. Canada has a lot of good things going for it, but housing affordability is at a crisis point.

It is. You can just look at the US and Canada over the same time period to see how out of wack Canada is. Canada is basically the US minus the 2008 crash. It's just price inflations non-stop for 20 plus years.

Isn't it 40 years??

My understanding is prices crashed hard in the 70s, there was a slight decline in 1990 and 2008, and other than that they've been going up 5-10% per year.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#260

Post by mrep »

lotsofpulp wrote: post #224
ferdowsi wrote: post #187

Earlier quoted context omitted.

After the 2017 tax reform bill, itemizing deductions is not cost effective for the vast majority of Americans.

Vast majority being 90% according to IRS statistics. It seems it will take some time for the myth of the effects of the mortgage interest tax deductions to die down. It is also capped at $750k of mortgage debt, which is not much for the 10% of filers who are itemizing and using the deduction.

If you are single it can definitely help. My deduction was 25k between SALT and the mortgage interest deduction vs 12,400 for the standard.
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