Mortgage demand collapses, below 2008

[1srelluc]

Much of rent increases are driven by property tax increases by local governments, but most is pure greed.

Why do you hate capitalism?

They took the risk (and the loan) either building or renovating so why should they not charge what the traffic will bear?

 

[1srelluc]

Yup. I lived with my parents for 10 months after I graduated from college. I did not use my salary that first year for the good life: I treated myself to an occasional evening out with friends, but most of it went into the bank for furniture I would need to buy for the apartment I would be moving to shortly. It was always understood by my parents and myself that my living with them was a temporary situation until I could build up some savings.

I'd say that was the case for most of the over 55 crowd.

 

[JohnDB]

Of course the housing market is depressed....and the housing market is just an indicator of the entire construction industry. It too is in the dumpster.

We have had a MAJOR shift in the way people go to work with the pandemic. The "work from home" crowd has not (and likely wont) gone back into the office and the excess office space leases haven't completely shaken out yet.

They will in about another 3 years.

Most small businesses (under 250 employees) will choose to continue to save money with office hotelling a smaller office footprint. Big corporations will still insist on office workers returning....because stock prices are reflections on growth instead of profits anymore and PE ratios of 7-9 are from a bygone era.

Restaurants will continue to struggle in every capacity possible. From non-existent labor pools to lack of catering contracts and exploding food prices. (Indicating poor service economy)
So, if you wish to eat....better learn to cook because eating out is going to return to a high end luxury instead of a staple.

Manufacturing is of course going to continue....what little is done as part of the American economy....(steel, aluminum, concrete, and microchips)

Raw Materials will continue up to a point. (Construction lags will drag it down)

Technology and intellectual property.....mixed bag here. Entertainment is dumpster diving again as independents are eating away at the music labels. Movies haven't put anything on the screen worth watching before the pandemic and only gotten worse since. Software companies keep charging for updates (like Veeva and Microsoft) but little productivity is being gained....and with the new AI systems being made publicly available....code writing has become almost free for simple to moderate code writing needs. (Time for code monkeys to get a new education before they go the way of buggy whip manufacturers)

 

[Lisa558]

I'd say that was the case for most of the over 55 crowd.

It goes back to “entitlement.” Nowadays, parents don’t think their new graduates should have to live in a dumpy apartment building when they are “used to” large, middle class homes.

When you and I were in our early 20s, it was understood - or made clear to us by our parents if we complained - that when you’re first starting out, you have to rent a room, share an apartment, or otherwise get by in less-than-ideal situations until you have moved up a bit in the career ladder.

 

[JohnDB]

It goes back to “entitlement.” Nowadays, parents don’t think their new graduates should have to live in a dumpy apartment building when they are “used to” large, middle class homes.

When you and I were in our early 20s, it was understood - or made clear to us by our parents if we complained - that when you’re first stating out, you have to rent a room, share an apartment, or otherwise get by in less-than-ideal situations until you have moved up a bit in the career ladder.

Houses also have increased in size.
Starter homes used to be apartment sized....now they tend to be 1500 square feet or more. And apartments have grown lately too.

Now a median sized home is around 2,000 ft². Large ones are 4,000ft² and up.

Low interest rates made larger homes more affordable....now that they are high....smaller (cheaper) is back. $10,000 in home price is like $30/month in your mortgage depending.

So now a $500,000 home changes to a much smaller home than what it used to be.

 

[Woodznutz]

Why do you hate capitalism?

They took the risk (and the loan) either building or renovating so why should they not charge what the traffic will bear?

I love capitalism but someone has to stand in the gap.

These days the traffic is having a hard time bearing it.

 

[Dont Taz Me Bro]

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!

Interest rates are up. Eventually it will normal out.

 

[Lisa558]

Interest rates are up. Eventually it will normal out.

Yeah, but in the meantime, Americans are struggling. Telling them “eventually” doesn’t help when they can’t pay the grocery bill TODAY.

I just read that 40% of credit card holders can’t make their MINIMUM payments these days.

 

[1srelluc]

Interest rates are up. Eventually it will normal out.

The question is what will be "the new normal" the dems will have us living under that we are supposed to accept?

 

[Lisa558]

The question is what will be "the new normal" the dems will have us living under that we are supposed to accept?

Biden said Americans need to learn to lower their expectations. And something else about insects.

 

[1srelluc]

Biden said Americans need to learn to lower their expectations. And something else about insects.

He wants you dining on cricket paste while they enjoy lobster.

 

[Dont Taz Me Bro]

The question is what will be "the new normal" the dems will have us living under that we are supposed to accept?

We had abnormally low interest rates for a long time.

 

[Lisa558]

He wants you dining on cricket paste while they enjoy lobster.

That’s socialism for you - the ruling class at the top, and then the masses.

 

[1srelluc]

We had abnormally low interest rates for a long time.

I'd like to say new leadership might help but as long as congress keeps spending like they are the fed is going to keep going up on the rate.

 

[Lisa558]

I'd like to say new leadership might help but as long as congress keeps spending like they are the fed is going to keep going up on the rate.

So the logical question is why is Biden fighting the Fed’s efforts to control inflation by raising rates?

 

[1srelluc]

So the logical question is why is Biden fighting the Fed’s efforts to control inflation by raising rates?

All POTUSs bitch about the fed to one extent or another.

 

[Woodznutz]

Yeah, but in the meantime, Americans are struggling. Telling them “eventually” doesn’t help when they can’t pay the grocery bill TODAY.

I just read that 40% of credit card holders can’t make their MINIMUM payments these days.

The money to help people comes from the people, but if the people aren't working and paying taxes...no money.

 

[Likkmee]

Democrats will see to it that they take all your wealth.

As far as whose fault it is, obviously it is Putin

Da!

Vee need velping dem. Zend mo munny !

 

[hadit]

Every time I go to the grocery store, I buy an extra bottle of water and a few extra cans of veggies, fruits, and tuna. My pantry is starting to look well-prepped.

Don’t forget the manual can opener.

And flip it sideways to cut the top of the can off with no sharp edges.

 

[braalian]

My mortgage identifies as a student loan. The government should forgive it.