Mortgage demand collapses, below 2008

[1srelluc]

We can't even seem to get to the recession. I'm sure we will try harder.

Stop moving the goal posts then.

Hey, buck-up there little buckaroo......I have every confidence the dems will get there sooner rather than later.

 

[pknopp]

Stop moving the goal posts then.

Hey, buck-up there little buckaroo......I have every confidence the dems will get there sooner rather than later.

We had been on this path for years.

 

[Concerned American]

We can't even seem to get to the recession. I'm sure we will try harder.

You're in denial.

 

[JustAnotherNut]

When the economy and job markets are unstable, home prices are over-inflated, prices of goods & services are stretching home budgets to the brink.........who can come up with the 20+% down payment and the high monthly payments for a new home???

There is little wonder why so many are homeless, when rent prices are just as bad

 

[The Duke]

Mortgage Applications to buy a house just collapsed to an index level of 147.??

That's the lowest level of buyer demand in 28 YEARS.

Lower than anything we saw in the 2008 Crash.

Down 41% from last year.

It's also down about 35% here in Virginia.....We generally weather such downturns better than the national average but considering home affordability is at record lows, this is of no surprise......If memory serves the old formula for a roof over you head was 30% of net income.....Now it's 40% and going up.

Blame game on!

There's a war against single family home ownership. Housing costs are about 100% higher than ever before in America as it was for 100s of years.

They want everybody in Warsaw-type ghettos where they can be easily controlled.

Also 2 generations of the indoctrinated don't even want the responsibility of having to do home things like cut grass and clean and all the innumerable chores that come with home ownership. They think all of that's beneath them and for the handyman and Mexicans.

 

[Concerned American]

There's a war against single family home ownership. Housing costs are about 100% higher than ever before in America as it was for 100s of years.

They want everybody in Warsaw-type ghettos where they can be easily controlled.

Also 2 generations of the indoctrinated don't even want the responsibility of having to do home things like cut grass and clean and all the innumerable chores that come with home ownership. They think all that's beneath them and for the handyman and Mexicans.

Heaven forbid they would have to put down their phones and xboxes.

 

[JustAnotherNut]

There's a war against single family home ownership. Housing costs are about 100% higher than ever before in America as it was for 100s of years.

They want everybody in Warsaw-type ghettos where they can be easily controlled.

Also 2 generations of the indoctrinated don't even want the responsibility of having to do home things like cut grass and clean and all the innumerable chores that come with home ownership. They think all of that's beneath them and for the handyman and Mexicans.

As long as they can afford to pay for those services, then it's not so bad and in the end contributes to the economy as a whole by keeping those businesses working. But those costs play into the 'cost of homeownership' as well.

 

[Harpy Eagle]

High interest rates will do that.

I am not sure what people expected with the rising interest rates.

 

[JackOfNoTrades]

Stop moving the goal posts then.

Hey, buck-up there little buckaroo......I have every confidence the dems will get there sooner rather than later.

We haven't gotten to a recession because the Fed is still raising interest rates to combat inflation. We haven't collapsed yet (exactly what would have happened if the "free market" had been allowed to do its job) because the Fed raised interest rates to combat inflation. Inflation has not cooled for a number of reasons, one of the primary ones being a still hot jobs market...despite all the tech layoffs.

Pretty much the Kobayashi Maru scenario. Which ascending no-win scenario would you like to see?

 

[1srelluc]

Pretty much the Kobayashi Maru scenario. Which ascending no-win scenario would you like to see?

Let's see, your ilk have already redefined the historical parameters of a recession and as your ilk is pretty good at cheating maybe you can "Kirk" your way out of the K M scenario.....Maybe you will even give each other commendations for creative thinking.

Old Trekkie here so you don't want to play that game with me.

 

[Harpy Eagle]

We haven't gotten to a recession because the Fed is still raising interest rates to combat inflation.

Which is why we will got into a recession. It is the only tool the Fed has to stop the sort of inflation we are seeing

 

[1srelluc]

Which is why we will got into a recession. It is the only tool the Fed has to stop the sort of inflation we are seeing

It's likely too late anyway but it's not like the administration nor the Congress is going to put in place austerity measures to slow down their spending.

Hell, some blue states are talking about giving away unused covid funds to negros instead of returning it to treasury.

Just the other day Ol Janet Yellen was going on about 10 billion more to Ukraine.

 

[Concerned American]

It's likely too late anyway but it's not like the administration nor the Congress is going to put in place austerity measures to slow down their spending.

Hell, some blue states are talking about giving away unused covid funds to negros instead of returning it to treasury.

Just the other day Ol Janet Yellen was going on about 10 billion more to Ukraine.

Truth be told, the printing of trillions of dollars that we didn't have probably had the largest influence on hyperinflating the economy.

 

[JackOfNoTrades]

Let's see, your ilk have already redefined the historical parameters of a recession and as your ilk is pretty good at cheating maybe you can "Kirk" your way out of the K M scenario.....Maybe you will even give each other commendations for creative thinking.

Old Trekkie here so you don't want to play that game with me.

Recessions were traditionally defined as two consecutive quarters with negative GDP growth. But, neither side changed that definition. The economy redefined it for us.
I get that you want to tidy it up and put it into a "right" or "left" box to satisfy your political bias, but as the old saying goes, "it don't work that way".

I'm just as old as you..so play away. You ain't seen nothing I haven't.

 

[JackOfNoTrades]

Which is why we will got into a recession. It is the only tool the Fed has to stop the sort of inflation we are seeing

Maybe. It might be inevitable since quickly rising rates usually mean recession...but..economic indicators are mixed. All bets are off. Just when I think something is inevitable..I'm proven wrong.

 

[Woodznutz]

Homes will just be rented-out instead.....I don't see a collapse.....Every builder in my AO is building with a eye towards renting and are getting the capital to do so.

This is a big problem.

 

[LibertyKid]

High interest rates will do that.

Exactly. My daughter is semi-interested in buying her first house. But interest rates right now, vs 18 months ago, is around a $150 - $200 increase. I'm telling her to save up for a bigger down payment and to see if the rates drop.

 

[Concerned American]

Homes will just be rented-out instead.....I don't see a collapse.....Every builder in my AO is building with a eye towards renting and are getting the capital to do so.

There are problems in the rental sector as well. People and local governments are currently passing landlord/tenant laws that swing too far in the direction of protecting the tenants from unscrupulous landlords. These protections are necessary but as is often the case--they become overbearing on responsible landlords to the point that it isn't worth the hassle to deal with the red tape or the tenants that would abuse the system. Also rentals are an avenue to the creation of wealth and there are those who feel that a landlord is not due a fair profit and call for rent controls. These issues will have an effect on the demand for new housing and mortgages in addition to increased interest rates--all leading to increases in homelessness.

 

[1srelluc]

There are problems in the rental sector as well. People and local governments are currently passing landlord/tenant laws that swing too far in the direction of protecting the tenants from unscrupulous landlords. These protections are necessary but as is often the case--they become overbearing on responsible landlords to the point that it isn't worth the hassle to deal with the red tape or the tenants that would abuse the system. Also rentals are an avenue to the creation of wealth and there are those who feel that a landlord is not due a fair profit and call for rent controls. These issues will have an effect on the demand for new housing and mortgages in addition to increased interest rates--all leading to increases in homelessness.

Maybe in the leftist states/cities.....Not so much in sane states/hinterlands.....It's whatever the traffic will bear, you know, the free market at work.....How else would they be getting the capital to build/renovate? Banks loan on perceived political risks as well as economic ones.

 

[Concerned American]

Maybe in the leftist states/cities.....Not so much in sane states/hinterlands.....It's whatever the traffic will bear, you know, the free market at work.....How else would they be getting the capital to build/renovate? Banks loan on perceived political risks as well as economic ones.

I agree, but there are those like Protectionist who are convinced that landlords are just using tenants as cash cows--and to be fair, there may be a few of those, but by and large I think it is the scenario that you explained. Again, the few abusers make it difficult for the many responsible landlords.