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Re: Mortgage Rates

By: Decomposed in 6TH POPE | Recommend this post (0)
Fri, 16 Sep 22 6:13 PM | 32 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 35601 of 60008
(This msg. is a reply to 35591 by micro)
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micro:

Re: “This is nothing.”It ain't nothing.

When interest rates are low, home prices rise because buyers are willing to buy the most home they can get while still being able to make monthly payments. When rates are high, the opposite is true.

When rates are elevated but EXPECTED to fall, prices can leap as buyers figure that they can buy more home than they can actually afford if they just refinance down the road. Again, the opposite applies.

The housing market is currently in the worst of situations. Houses are expensive because rates have been low, but rates have recently jumped bringing down sales, and rates are expected to go a whole lot higher - so few anticipate being able to refinance a new loan (or an old loan) for a very, very long time, maybe ever.

The bottom line is that we should expect slow and decelerating home sales for a long time to come. There might even be a housing glut appearing soon.

On the brighter side (for some), this will create a buyer's market, particularly for the fortunate few who can pay with cash. They could get some bargains in a year or two - but probably never again like what was available in 2011...








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The above is a reply to the following message:
Re: Mortgage Rates
By: micro in 6TH POPE
Fri, 16 Sep 22 2:20 PM 		Msg. 35591 of 60008

This is nothing.

Do you remember the Carter years? Around 1980 when mortgage rates hit around 20 ppercent?

I had to remove my house from the market because I could not mortgage another one and move toward Mount Vernon, Ohio to take a position with Grumman.

My career took off after this so it was known to me that it was God's plan for me for the events that happened and followed..

BUT, I remember well when mortgage and interest rates under Carter were simply horrific..

I am sure Ribs does as well.

So, compared to some prior years today ain't nearly as bad...


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