Housing market's gonna crash
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If buyers can't afford it, the thing will sit on the market.
And the seller doesn't want to eat the loss. So then what?
There was about 8 years of that limbo around Memphis.
Are we ready for something like that to happen everywhere?
Dallas market pre-2008 didn't go crazy. This time, it was a
hotbed of crazy price hikes. I don't think they will be as lucky
this time around. And let's face it, Los Vegas is going to be
another blood bath.
"The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
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ken brydson wrote: »
Just sayin'.…
FWIW I paid 7 3/8% (it was an excellent rate at the time) for the life of my mortgage. It was far better than paying my much cheaper rent in the long run but some people just don't think long term. -
Yeah, it was either the 70's or 80's that a 7-8% mortgage was either good or the norm. People have been very spoiled the last decade with staggeringly low interest rates. I wouldn't be surprised if the rates keep going up, maybe even doubling and staying there for a very long time. Like, maybe a decade or more, just like back then.
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
Having the ability to take out a 30 year loan at between 2 to 3 percent interest is a sign there's something seriously wrong with an economy. It was only that way for so long because of the economic collapse around 2008 and the struggle to get out of that mess.
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Yeah, it was either the 70's or 80's that a 7-8% mortgage was either good or the norm. People have been very spoiled the last decade with staggeringly low interest rates. I wouldn't be surprised if the rates keep going up, maybe even doubling and staying there for a very long time. Like, maybe a decade or more, just like back then.
Tom
90s as well. We bought our house in 1996 through an FmHA loan with a variable interest rate, but capped at 7.25% for life. So @motorstereo you are not far off of that, though not sure when you bought?
I should add, my max monthly payment (without taxes or insurance) is capped at $741.
So, are you willing to put forth a little effort or are you happy sitting in your skeptical poo pile?
http://audiomilitia.proboards.com/ -
So I shouldn't complain about my 3.25% 15 yr fixed?Gustard X26 Pro DAC
Belles 21A Pre Upgraded with Mundorf Supremes
B&K M200 Sonata monoblocks refreshed and upgraded
Polk SDA 1C's modded / 1000Va Dreadnaught
Wireworld Silver Eclipse IC's and speaker cables
Harman Kardon T65C w/Grado Gold. (Don't laugh. It sounds great!)
There is about a 5% genetic difference between apes and men …but that difference is the difference between throwing your own poo when you are annoyed …and Einstein, Shakespeare and Miss January. by Dr. Sardonicus -
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IIRC, our first mortgage (1982, give or take) was at 13.25%.
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I've seen rates as high as 9% during my tenure as a homeowner. At this point I am just happy I refinanced 18 months ago at 2.25% for 15 years. Not sure I will have that opportunity again in my lifetime.2 Channel Rosso Fiorentino Volterra II, 2 REL T9x, Norma Revo IPA-140B, Norma Revo DAC-2, Lumin U2 Mini, VPI Prime w/SoundSmith Zephyr MIMC, ModWright PH-150, SonoruS ATR10, AudioQuest Niagara 7000 w/Dragon power cable, WAY power cables for all other sources, WAY Silver 3 Ana+ speaker cables, WAY interconnect cables
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Tom[/quote]
90s as well. We bought our house in 1996 through an FmHA loan with a variable interest rate, but capped at 7.25% for life. So @motorstereo you are not far off of that, though not sure when you bought?
I should add, my max monthly payment (without taxes or insurance) is capped at $741.
[/quote]
Early 1988 I bought mine which was at the peak of the condo bubble when condos were selling for as much as single family homes. That also was an interesting time in the housing market.
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That is great! I actually gave up a 2.5% loan... If I kept it I couldn't live on $200 a month to pay bills, gas and food. It wasn't an easy decision, the current atmosphere I fully expected all that to continue to escalate.
Male gigolo not paying as good as it used to? Damn!Gustard X26 Pro DAC
Belles 21A Pre Upgraded with Mundorf Supremes
B&K M200 Sonata monoblocks refreshed and upgraded
Polk SDA 1C's modded / 1000Va Dreadnaught
Wireworld Silver Eclipse IC's and speaker cables
Harman Kardon T65C w/Grado Gold. (Don't laugh. It sounds great!)
There is about a 5% genetic difference between apes and men …but that difference is the difference between throwing your own poo when you are annoyed …and Einstein, Shakespeare and Miss January. by Dr. Sardonicus -
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Lol...the 420 workout
... and my body by bud....yeah, not a pretty site
All that matters is I can still shoot straight2-channel: Modwright KWI-200 Integrated, Dynaudio C1-II Signatures
Desktop rig: LSi7, Polk 110sub, Dayens Ampino amp, W4S DAC/pre, Sonos, JRiver
Gear on standby: Melody 101 tube pre, Unison Research Simply Italy Integrated
Gone to new homes: (Matt Polk's)Threshold Stasis SA12e monoblocks, Pass XA30.5 amp, Usher MD2 speakers, Dynaudio C4 platinum speakers, Modwright LS100 (voltz), Simaudio 780D DAC
erat interfectorem cesar et **** dictatorem dicere a -
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https://www.realtor.com/news/trends/home-prices-expected-to-fall-even-if-no-recession/
Investment companies have basically come to a screeching halt. This will have a big impact on availability and demand.
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
I can't believe we're still pushing the "not inflation" and "not a recession" narrative.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
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No inflation here, just paying more for quality products and service- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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Well, my first home in the 80’s had a 12.5% fixed 30 year interest rate.
That was at a reduced rate as it was thru the VA.
I don’t think we’re done with rate hikes yet… -
The Feds flat out said they were going to do staged rate increases over the next 6 months and that was back at the end of June. If their timeline is accurate, they have two more hikes coming before the end of the year. Then they're going to reassess and see if more rate hikes are needed.
I heard a talking head on a news channel I was surfing past say that he would not be surprised if we hit 10% rates by next spring. That might be extreme but we haven't see inflation like this since the Carter administration and digging out of that is what led to the 12-13% rates.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
Oh man, 10% not good.
Unless cd rates go up in relation to rates.
Remember my Pop getting 2 year cd’s @ 13%. -
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Link?
They usually raise rates on Wednesday, third week of month or so- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit. -
I think he's talking about this that popped up today.
It's not that it happened already just that the conditions are met for the Fed to say the next hike is necessary. It will likely happen in November. It's behind a pay wall, though. I saw a summary on an aggregator site but it's not worth linking to because it doesn't say much more than what I just wrote.
https://www.wsj.com/articles/inflation-report-seals-case-for-0-75-point-fed-rate-rise-in-november-11665667815
If it does happen, the Fed may hold off until after EoY to determine the next hike.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
I wouldn't be surprised if they raise every month until the beginning of the year and beyond.- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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That's what their plan they released in June said was going to happen.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
Talking about the same politicians that traded manufacturing and tech jobs for baristas and customer service jobs.- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
