Math for buying a home no longer works out. These charts show why

[jotathought]

Yes, people got spoiled with unnaturally low interest that were kept low for far too long

Or .. they were kept too high for far too long. Regardless .. low interest rates provide a benefit ..

 

[Harpy Eagle]

Of course the most significant rise has been since 2020........or did you miss that part?

Indeed there was a big jump starting in 2020...it is almost as if a national moratorium on evictions and foreclosures had some unintended, yet fully predictable, consequences

 

[1srelluc]

I bought a home in 2000 with an 8% mortgage rate and no one was crying about anything.

The Fed overreacted for sure and I can’t believe they aren’t cutting rates but it’s a crap roll with the post pandemic economy so I dont blame them for doing what they did. Just think they are wrong.

I just bought a second home down on the beach and I would bet it will appreciate 50% in a few years. There’s not much beach real estate left that isn’t super expensive.

LOL....I owned a rental home in Hatteras Village, NC back in the early 2000s. A Cat 2 (Isabel) came by and it ended-up out in Pamlico Sound.....I took my share of the insurance money and ran.

The circled speck is the rental.

It was right up against the Sound and the Atlantic is only about 80 yards away on the other side.

As it was:

After it was all filled back in another one (a lot fancier) was built in it's place.

 

[JustAnotherNut]

Indeed there was a big jump starting in 2020...it is almost as if a national moratorium on evictions and foreclosures had some unintended, yet fully predictable, consequences

yes foreclosures are starting to hit the market, which creates a glut on the housing market and devalues other homes not part of foreclosures. IOW, home values/prices will soon drop, then it's probable the feds will raise interest rates even further

 

[MarcATL]

The president does not raise or lower rates, seems an adult should know this.

The answer to the question it that this is a deeper problem than just a temporarily raising of rates. But that is too much thought for a mindless partisan drone like you, all you can do is parrot party talking points.

USMB far rightwing and Republican posters are partisan?!?! Say it ain't so!

 

[Harpy Eagle]

yes foreclosures are starting to hit the market, which creates a glut on the housing market and devalues other homes not part of foreclosures. IOW, home values/prices will soon drop, then it's probable the feds will raise interest rates even further

Doubtful they will go up anymore. Inflation is almost down to target, job numbers are slowing down. I doubt they will drop them yet but also doubt they will go up any more

 

[TheYellowKing]

Yes, people got spoiled with unnaturally low interest that were kept low for far too long

So you think people should be paying 18% on a 400k house? LOL what an idiot

 

[TheYellowKing]

Doubtful they will go up anymore. Inflation is almost down to target, job numbers are slowing down. I doubt they will drop them yet but also doubt they will go up any more

MSN

www.msn.com

How much you wanna bet they do it again

 

[Harpy Eagle]

So you think people should be paying 18% on a 400k house? LOL what an idiot

See, this is the problem with mindless drones, everything is black and white. In your world there is only 18% and 1.%, you lack the basic intellect to know there is anything in-between those two things.

Is it safe to assume you supported Trump's push for negative interest rates?

 

[Harpy Eagle]

MSN

www.msn.com

How much you wanna bet they do it again

A month away from the forum.

If they raise it a the next meeting I will leave the form for a month. If they do not, you leave.

Deal?

 

[JustAnotherNut]

Doubtful they will go up anymore. Inflation is almost down to target, job numbers are slowing down. I doubt they will drop them yet but also doubt they will go up any more

The housing market is and always has been based on supply vs demand. With the foreclosures coming on the market, along with everyone trying sell for a big profit, means the market is being flooded. And with high interest rates and people out of work there's not so many buyers. This is a big part of lowering interest rates to get people to buy/borrow.......not the only reason, but is a big contributor.

Interest rates are based on many factors yes......but as cheaper homes (foreclosures) come on the market, there's a good chance people will be buying those cheaper homes and fixing them up themselves instead of buying a more expensive & better conditioned one......which the banks/feds end up on the losing end of that. So with that rate loss, and possibly more people buying again.......the feds figure the market can bare an increase.

We shall see how it plays out in the next few months

 

[Hang on Sloopy]

The Math For Buying a Home No Longer Works. These Charts Show You Why.

What does it take to buy a home in the U.S.? A lot more than it did before the Federal Reserve raised interest rates.

www.wsj.com

I'll tell you why, Biden and his Fed raising rates. Who honestly can afford a home today with rates at or over 7%? The charts and math doesn't lie. Biden and the Fed have ruined this economy and are killing the middle class.

lol.................i originated mortgage loans when they were 14%

i just love any biden supporter who suffers......i hope inflation goes 20% in 24

 

[Harpy Eagle]

The housing market is and always has been based on supply vs demand.

yep, that is why the moratorium, which cut supply, drove up the cost

With the foreclosures coming on the market, along with everyone trying sell for a big profit, means the market is being flooded.

The market is not being flooded and there is a pretty severe shortage of housing in the US so some selling would be a good thing

We shall see how it plays out in the next few months

Indeed.

 

[Hang on Sloopy]

Potatohead's inflation disaster is a twofer of destruction.

Not only does it rob American families of spendable income but it also drives up interest rates.

Anybody that voted for Potatohead is an idiot.

i just hope it gets really bad in 24........watch them suffer .i'll galdly pay 20 bucks a GALLON TO RID US OF IS THIS VERMIN CANCER

 

[JustAnotherNut]

The market is not being flooded and there is a pretty severe shortage of housing in the US so some selling would be a good thing

You do realize the foreclosure process takes atleast 2-3 years before it goes to market.......right??? As I said, they are just now starting to hit the market.


There isn't as much of a housing shortage as much as people are being priced out. Rents and home prices are astronomical, so much so that it forces homelessness.


It was just a few years ago, when there were more jobs than people to fill them and people were buying houses over the asking price within hours of going on the market............now there's more people looking for jobs and houses are sitting for months before being sold........and this is not counting foreclosures


IDK about your area, maybe the economy, job & housing market is better where you are.........but ^^^that is the reality here currently

 

[TheYellowKing]

See, this is the problem with mindless drones, everything is black and white. In your world there is only 18% and 1.%, you lack the basic intellect to know there is anything in-between those two things.

Is it safe to assume you supported Trump's push for negative interest rates?

Is it safe to assume all you do is deflect and kiss establishment ass? I think so

 

[Harpy Eagle]

You do realize the foreclosure process takes atleast 2-3 years before it goes to market.......right??? As I said, they are just now starting to hit the market.

I do realize this. Did you think all those people living in homes and apartments and not being made to pay rent was not going to have a negative consequence?

There isn't as much of a housing shortage as much as people are being priced out. Rents and home prices are astronomical, so much so that it forces homelessness.

There is a shortage of affordable housing. I do not know your age but when I was younger home builders built what we called starter homes, smaller less expensive. That no longer happens, now what is being built is what we used to work up to, if even that. Around my area no new home I have seen is less than 350. And we have these "luxury urban living" apartments springing up like weeds all over the place with rents in the 2000 to 3000 range.

My 21 year old is in college and he is looking at it all and going "how the fuck am I ever going to be able to afford a home"

It was just a few years ago, when there were more jobs than people to fill them and people were buying houses over the asking price within hours of going on the market............now there's more people looking for jobs and houses are sitting for months before being sold........and this is not counting foreclosures


IDK about your area, maybe the economy, job & housing market is better where you are.........but ^^^that is the reality here currently

We have more jobs than people to fill them, everyone has help wanted signs out. Houses are not staying on the market long and rental units are moving even faster as we do not have a lot of rental homes in our area.

I am the Treasures for our HOA and the building is still building homes and they are being filled as fast as they are being finished

 

[TheYellowKing]

lol.................i originated mortgage loans when they were 14%

i just love any biden supporter who suffers......i hope inflation goes 20% in 24

It won't be just them suffering though it'll be people like me trying to flee Blue Shitholes

 

[Harpy Eagle]

Is it safe to assume all you do is deflect and kiss establishment ass? I think so

I have not kissed anyone's ass, that is just your stupidity showing again.

 

[TheYellowKing]

A month away from the forum.

If they raise it a the next meeting I will leave the form for a month. If they do not, you leave.

Deal?

You won't do it but ok you're on