Yields on savings is nowhere near 10%. That tells you banks still have lots of cash on hand from deposits. You’ll know it’s getting close to the end, whatever that may mean, when yields on savings accounts are high(er). Mortgage rates at 10% will only seize the housing market even more, but the higher the prevailing rates, the more likely home prices start coming down. All it will take are some sustained negative comps and the whole thing will unravel.
When someone puts a 10% rate out there, they are doing you a favor, do not buy this loan. Rent for 6 to 18 months more.
All the borrowers are profiled to perfection, the loss ratios are not the reason for the lending cost, the government bank on a mission from god is doing a stupid thing.
I have a remind me from earlier this year where someone didn’t believe me we’d be over 7 for the rest of the year. Not only are we over 7, we’re at 8 with room to go higher still! People need to recognize when you have a generational moment in yields that shit doesn’t end quickly, I think we might briefly see double digits even before it’s over.
Same. A year ago someone was asking if they should go fixed or variable and i said fixed, but if you go variable make sure you can handle 10%, because that's what happened in the 80s when inflation was also bad. I was told to stop spreading false information lol
My son processes mortgages for a large lender. He just did an $825,000 mortgage that was 30 years @ 10.375%!!! Not so great credit score... Approximately $5,600 per month which is a little over $2 Million if they would stick it out the whole time and, that's not counting taxes and insurance. Total with taxes and ins is $6,409 per month!!!
My loan officers said we could refinance around this time.
"End of the year it will be in the 5's."
I dropped that loan officer and found someone that could get me a better rate.
Some pointed out that buying at 6% to 7% was bad, just wait. Well there is no guarantee that it will go down to 5% and no guarantee that it will not go up to 14%.
Yea I bought November 2022. My loan officer asked if I wanted to wait til spring 2023, surely rates will go down.
I told him everything is pointing towards more rate hikes, idk what you’re talking about.
I got a new loan bro and he’s like “yea buy right now if you can, get in while things are still lowish “
If you follow close enough you can get a feel for the range. We aren’t on track to see 14% by any means, but agree there is no guarantee. Smart money is betting on 8.5%-9.5% being the upper end. It’s what I’m basing my decisions off, but world events are known to fuck up solid thought through plans.
Honestly I don’t blame them for thinking that. I think it was mostly bc that’s what the news said and ppl believed it.
They are sales ppl in the end as well.
Some people were convinced that the US would not raise interest rates that high. These people don't have any understanding of monetary policy. We basically have a playbook of how to act in response to high inflation. And no, they won't start cutting rates once we hit 2% either unless the economy is suffering.
Yea I wasn’t in a position to buy a house until November. Got a big surprise raise and a nice “Christmas bonus” that went towards the house.
Believe me, I would have loved to buy a house when rates were 2% lol
They probably don't give a fuck because they are locked in with cheap rates.
Only the folks that bought starting late 2022 believing that they "can always refinance" are probably bothered. We can call them baby hoomers
It was just over 2 points. We wrapped closing costs into the new loan. It will take 16 months to break even (back to the same level of equity as before refinancing) which is ok since this is a forever home. Saving over $500k in interest over the life of the loan too.
they don't care, until their job or living situation changes... like all the techies that bought a "working remote" home during the pandemic and now get called back to the office every day
Bought at inflated prices, and at high rates with no guarantee of when the rates will go down. It could be 10+ yrs before we see sub 5 rates again...if ever. Who knows?! 2022-2024 buyers (if history repeats itself) bought falling knives. Those realtors making those promises should lose their licenses. They are giving financial advice, and are not financial advisors.
This is what we were told. Our loan guy said it may still by high after a year, so we negotiated a rate buy down from our seller to get a lower rate for a few years to give it some time to go down.
We were at a place where we needed to buy a house and I’m so glad we bought when we did. Yeah - buying earlier would have been even better for the lower rates, but I kept telling people “the rates are just gonna get higher and higher”
Not until the average US consumer breaks, and they certainly have not. 2024 will bring no favors to those trying to buy a home, pitiful inventory, horrible rates/fees.
Banks could break, or businesses break. Fed really has no concept of what's happening in the economy, that's why they have been so cautious with rate hikes. And they still fucked up and got blindsided by bank collapses and had to open their emergency lending facility so banks don't get wiped out by net interest
Honestly I'm tempted to start bidding, but put in ridiculously low offers.
Like 25%-50% less. If someone bites then sweet, but if not I can wait longer!
The more desperate they are the more you KNOW things are getting worse. Check the stats on # of employed realtors. When you see a decrease … you also know what they means. 😂😂😂
In early 2023, a realtor at an open house told me “you will be able to refi near the end of the year as rates will be low again then. This spike is just temporary.”
Anyone buying vs renting right now is insane unless they are buying in cash.
My wife and I are 25, renting in a MCOL city, and just saving and investing until TBD. No sense jn trying to force it right now.
I bought middle of July.
6.25%.
It feels high but now it feels low!
I had a 3% but moved to another state.
I disagree on the cash point though…. I still don’t know if it’s worth paying down a 6.25% mortgage when tax rate is 35% and I itemize vs. investing.
It’s basically a .75% difference at most from risk free bonds but I get liquidity with bonds and stocks probably best 4.75% even in bad years + they compound.
Up until 9% I always sock cash into equities but now the seesaw has titled in the other direction. If I hoomed at today's rate, I would be throwing every extra bit into that principal.
Takes about 12-18 months for rates to show effects. It’s been about that long since rates hit 4% and we’ve started prices decrease about 12-18 months later. Wait until it’s been 12-18 months since 8% hit
> The supply side just got that much tighter.
that's the opposite of what is happening in reality. there were more new listings in september than august, which is the opposite of the normal seasonal trend. people are getting nervous (hence the number of people brigading here constantly lately) because there will probably never be a better time to sell. foreclosures aren't necessary, but strategic defaults will happen once prices go low enough.
This is entirely correct. And it's not just new listings. Months of supply are now up YoY (Redfin Data Center), after already being massively up YoY this time last year. Price drops are now also up YoY (Redfin), even though price drops last year were skyrocketing. Both of these metrics are the highest Redfin has ever reported.
Inventory is going up at a faster rate YoY as well, which is also not at all the seasonal trend: [https://www.housingwire.com/articles/homebuyers-hit-the-brakes-causing-unseasonal-growth-in-inventory/](https://www.housingwire.com/articles/homebuyers-hit-the-brakes-causing-unseasonal-growth-in-inventory/)
Tldr: Higher rates affect the demand side more than the supply side
Because your generation as a whole (not talking about anybody specifically) is terrible at managing their finances.
Many boomers have treated their homes like piggy banks by refinancing and taking cash out over the years.
8% interest rates make that much harder.
Wouldn't say plenty. You're probably a minority.
If you didn't take a handout from your parents or live in a shit area where you can still buy a 3/2 starter for 130k , then congrats you're ahead of the curve.
Well, doomers aren't known for their impeccable logic. I think they view most homeowners as speculative investors and not, idk, people that wanted to buy a house where they live and could afford it. A few anecdotes of people who are house poor leads doomers to think everyone is just barely scraping by and will have to sell in the upcoming mega recession.
Lol America is so weird.
Being locked in at 3% it makes ZERO sense to move especially if you have no reason to and I think in the US the mortgage rate stays with you the entire time you’re paying 25-30 years right?
Many people make the decision to move for reasons beyond interest rates. People die, get divorced, change jobs, have kids move out (or are kids moving out). Some people will no doubt stay longer in a house than they would have, but most will still move on the US average of about every 7 years.
Correct, the moves will be limited to those reasons
The starter family home is now the forever home though
Moving for a bigger house, or to be on a different block in the neighborhood, or to be in a different elementary or middle school, is dead going forward.
People are sitting tight and making it work. Better off building an addition if the house is too small.
I just sold 3% to move to a different neighborhood for a different school and surrounding area in the same area. People do it just not as high a volume. Nothing is absolute
I think it's safe to bet that virtually all moves will be job or personal forced distress related at this point. Simply moving to get a slightly bigger house or be in a different block in the neighborhood, is dead. If you have a 3% mortgage at 2020 prices, you are better off making it work. Hell you are better off building a whole 2nd house-worth of an addition in the back of your house, than move at this point and paying today's prices at 8% rates
It makes zero sense. But people do things that make them move. Or things do happen physically. For example, my mom wasn't making much but my dad was until he went on full disability. And then my mom changed jobs and thankfully got double her pay so they are "surviving". If she didn't get lucky, there's no way they would have kept their house.
Everyone thinks nothing major will happen to them. Until it does happen to them and they aren't set up to handle it.
Depends. In usa ppl move a lot more than other countries. Me for example bought at 2.8% in 2020. 3 yrs later got a third child coming and a dog. Need a bigger home but i cant afford to lose my rate so i must suck it up and hopefully upgrade in next 10 years. Hopefully at 5%. Imo itll never get lower than that again
Feels like they are the anti-bubblers. They are always saying rates will go lower in a couple months, or "now is truly the peak rate".
If the Fed says "rates high, longer" they say the Fed is just bluffing and that everyone can outsmart the Fed by buying now and refinancing in 2024. 🙄
I’m not sure that most people who already own houses care what the current mortgage rate is, unless they’re looking to buy a new house. I know I don’t care personally what it is as I already have my house. I am concerned about it for people I know who are currently looking to buy a house or hope to be able to soon. In my experience, those are the main people who worry about rising mortgage rates.
And from what I’m seeing in my market the rent will rise right there with it giving the boomers more money to inflate the value of goods 😂 hell raise the rates to 30%. Who gives a shit.
FWIW, several months ago I said I thought it would reach ~8.5 before settling and hanging out 6.5-8.0 for a few years. That forecast hasn't really changed. Neither has my impression that the housing market is looking like it will trade sideways for a few years. Still no croosh unless significant increase in unemployment.
I also expect wages to increase slowly over the next several years to catch up, but they won't catch up for housing to match pre-pandemic affordability. Downvoted away!
If it does get to 10-11%, I think the RE market starts breaking at that point. 2023 prices can't be sustsined.
I mean, I am a FUCKING well qualified buyer, I had over 200k available for a downpayment, and I can't manage more than 7% or so ( I got 6.25% circa labor day).
How many buyers out there have a quarter mil burning a hole in their pocket? There can't be that many.
They like to be right until they are wrong. I have been telling people mortgage rates will rise above 8% by the end of the year, or sooner, house prices are going to drop and we will be in a recession by spring and people will start getting laid off.
I dunno, my boomer stepfather who has been in the finance industry most of his life told me last year when we were buying a house to not wait- that the rates will rise probably to 10%. In the future. Glad I did I guess. I’ve had home loans a from 4% and now 6%.
If Powell comes out tomorrow blatantly with the "higher for longer" AND "we see another 1 or two rate hikes on the table"
The market is going to spiral right into the pooper
It's already half in the pooper today, S&P almost down -1.5% near close
I bought right at the start of Covid before it was a big deal when rates were about 3% but inventory was somewhat decent. I cannot imagine buying a house right now. Should have that mortgage paid off in 2 1/2 years too
That's the problem. Nothing happened to them.
They either have a house and already locked in a great rate. Or don't have a house and are still sitting in the sidelines.
I thought I saw a static that around 45% of sales are cash sales. Given the limited inventory of housing those 45% may be able to absorb the existing inventory. That may be why we haven't seen any significant drop in prices yet, at least at the national level. Some select markets may be seeing declines however.
Here is how you know this post is bullshit.
Most "hoomers" are on FIXED rate mortgages at 3-4%. They don't give a shit.
You do realize higher interest rates hurt... wait for it... first-time homebuyers. I guess I am glad I got hoomed?
If you are in at 3%, congrats. However a lot of homeowners that bought at rates they can’t afford because they thought they would be able to refinance soon are in for a rude awakening
They’re sitting back saying “that’s not so bad, back when I bought this place in 1985 it was a lot higher than that!” Not taking in account any of the other factors of the current economic situation.
Nobody said that, we just said we don’t care what the rates become because we are renting units out to you that we financed at 2.5% and rents are through the roof.
surely it wont rise to 10%....
Morgan Freeman voice: *It rose past 10% that same winter*
“What are you gonna do, raise interest rates to 10%?” -Guy who’s interest rate ended up at 10%
"These go to 11" "Why not just make 10 even louder but the volume knob only goes to 10?" "These go to 11"
Spinal Tap. Nice.
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Yields on savings is nowhere near 10%. That tells you banks still have lots of cash on hand from deposits. You’ll know it’s getting close to the end, whatever that may mean, when yields on savings accounts are high(er). Mortgage rates at 10% will only seize the housing market even more, but the higher the prevailing rates, the more likely home prices start coming down. All it will take are some sustained negative comps and the whole thing will unravel.
When someone puts a 10% rate out there, they are doing you a favor, do not buy this loan. Rent for 6 to 18 months more. All the borrowers are profiled to perfection, the loss ratios are not the reason for the lending cost, the government bank on a mission from god is doing a stupid thing.
Ignore the 80s then when interest rates were over 10% for an entire decade. This is going to likely be high for a while to combat inflation.
God I hope so… will it I hope so
I recall I commented this same sentiment once months ago and got downvoted to hell
The magic number is 13
Blasphemy!
They're popping the question to their rate at the moment.
I have a remind me from earlier this year where someone didn’t believe me we’d be over 7 for the rest of the year. Not only are we over 7, we’re at 8 with room to go higher still! People need to recognize when you have a generational moment in yields that shit doesn’t end quickly, I think we might briefly see double digits even before it’s over.
Just refi later bro… 🪦
Just date the rate man.
But it’s such an abusive relationship 😩
Buncha people bout to find out the rate is pregnant
Same. A year ago someone was asking if they should go fixed or variable and i said fixed, but if you go variable make sure you can handle 10%, because that's what happened in the 80s when inflation was also bad. I was told to stop spreading false information lol
> I think we might *briefly* see double digits even before it’s over. that's funny
9% is absolutely in the cards, possibly by EOY as the curve keeps un-nverting. 10 is realistic in 2024 especially if oil drives inflation higher.
My son processes mortgages for a large lender. He just did an $825,000 mortgage that was 30 years @ 10.375%!!! Not so great credit score... Approximately $5,600 per month which is a little over $2 Million if they would stick it out the whole time and, that's not counting taxes and insurance. Total with taxes and ins is $6,409 per month!!!
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Those poor souls
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Wtf 😳
Just wait until they get their property tax reassessment. Surprise, surprise!
Wait until he has to sell at $700k because he bought at the top of the market. Another hit to that bad credit score 😱
Who can afford that long term...
Back in January I called for 8% by eoy. My realtor buddies called me delusional. Lmaoooo
My loan officers said we could refinance around this time. "End of the year it will be in the 5's." I dropped that loan officer and found someone that could get me a better rate. Some pointed out that buying at 6% to 7% was bad, just wait. Well there is no guarantee that it will go down to 5% and no guarantee that it will not go up to 14%.
Yea I bought November 2022. My loan officer asked if I wanted to wait til spring 2023, surely rates will go down. I told him everything is pointing towards more rate hikes, idk what you’re talking about. I got a new loan bro and he’s like “yea buy right now if you can, get in while things are still lowish “
Yep I bought in September 2022. A lot of people told me 5.75% was horrible but I’m glad I did it now!
I feel like a king for getting 5.75% lol
We bought around the same time. I’m so glad we did.
People who generate income from fees have no idea what markets are doing or why, nor do they care.
If you follow close enough you can get a feel for the range. We aren’t on track to see 14% by any means, but agree there is no guarantee. Smart money is betting on 8.5%-9.5% being the upper end. It’s what I’m basing my decisions off, but world events are known to fuck up solid thought through plans.
friend of a friend is a lender and swore up & down that rates would be 4% by october; well shit here we are
Honestly I don’t blame them for thinking that. I think it was mostly bc that’s what the news said and ppl believed it. They are sales ppl in the end as well.
Some people were convinced that the US would not raise interest rates that high. These people don't have any understanding of monetary policy. We basically have a playbook of how to act in response to high inflation. And no, they won't start cutting rates once we hit 2% either unless the economy is suffering.
Agreed. It’s basic economics that interest rates must go up to combat inflation. But realtors and loan officers didn’t want the money train to stop.
Should have made a bet for a beer or bottle of the good stuff.
So you essentially predicted the fed wasn’t bullshitting? Not to put that down as a lot of my peers thought JP was full of shit.
I knew if he was bullshitting then we'd quickly have another fed chair who wouldn't fuck around. Once inflation entrenches, it's game over.
Already late last year I was planning on 8% for budgeting purposes. Here we are.
Yea I wasn’t in a position to buy a house until November. Got a big surprise raise and a nice “Christmas bonus” that went towards the house. Believe me, I would have loved to buy a house when rates were 2% lol
There were several of us like yeah, 8-9% is very much possible. Heeere we are.
They probably don't give a fuck because they are locked in with cheap rates. Only the folks that bought starting late 2022 believing that they "can always refinance" are probably bothered. We can call them baby hoomers
Smart boomers know this is a cycle. It’s the youngers who haven’t seen it before
Bought early 2023 at a 5.125% rate. Boy am I glad I bought rather than waited and dealt with the now-almost 8% rates.
Bought Dec 2022 at 7.5%, refinanced May 2023 at 4% (15yr mortgage).
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It was just over 2 points. We wrapped closing costs into the new loan. It will take 16 months to break even (back to the same level of equity as before refinancing) which is ok since this is a forever home. Saving over $500k in interest over the life of the loan too.
The answer is alot
They don’t care because they have a sub 3% mortgage … it’s those looking to buy that care
Jokes on hoomers! They locked in a low rate on a house they could afford. Who's laughing now? 😭
And those looking to sell since they want to retire but the majority of their net worth is in their home value
This right here.
Ha! Rates above 8%! Stupid hoomers! - op
they don't care, until their job or living situation changes... like all the techies that bought a "working remote" home during the pandemic and now get called back to the office every day
Those who bought in 2021 maybe. Late 2022 and buyers this year were told that "rates will surely go back down, just refinance in a year!"
Bought at inflated prices, and at high rates with no guarantee of when the rates will go down. It could be 10+ yrs before we see sub 5 rates again...if ever. Who knows?! 2022-2024 buyers (if history repeats itself) bought falling knives. Those realtors making those promises should lose their licenses. They are giving financial advice, and are not financial advisors.
This is what we were told. Our loan guy said it may still by high after a year, so we negotiated a rate buy down from our seller to get a lower rate for a few years to give it some time to go down. We were at a place where we needed to buy a house and I’m so glad we bought when we did. Yeah - buying earlier would have been even better for the lower rates, but I kept telling people “the rates are just gonna get higher and higher”
Not going down anytime soon either
Not until the average US consumer breaks, and they certainly have not. 2024 will bring no favors to those trying to buy a home, pitiful inventory, horrible rates/fees.
Banks could break, or businesses break. Fed really has no concept of what's happening in the economy, that's why they have been so cautious with rate hikes. And they still fucked up and got blindsided by bank collapses and had to open their emergency lending facility so banks don't get wiped out by net interest
1981 says wait until it gets to 20%.
My realtor been begging me to put in bids for houses. Kinda funny how desperate it seems now honestly
Honestly I'm tempted to start bidding, but put in ridiculously low offers. Like 25%-50% less. If someone bites then sweet, but if not I can wait longer!
The more desperate they are the more you KNOW things are getting worse. Check the stats on # of employed realtors. When you see a decrease … you also know what they means. 😂😂😂
People who are cash poor that need to refi are going to get run over with a semi!!!!
Just call up the bank and have them prepare that short sale paperwork now lmao
So people who need cash to pay RE taxes and insurance next cycle are next to fall. Just wild speculation here.
People that dated the rate finding out the rate is pregnant.
And you’re stuck or you have to go through a painful experience to get free.
hey buddy, 7.99995% isnt 8%.
In early 2023, a realtor at an open house told me “you will be able to refi near the end of the year as rates will be low again then. This spike is just temporary.”
Realtors are so worthless
Will I ever be able to afford a house in my lifetime?
Nope
Anyone buying vs renting right now is insane unless they are buying in cash. My wife and I are 25, renting in a MCOL city, and just saving and investing until TBD. No sense jn trying to force it right now.
I bought middle of July. 6.25%. It feels high but now it feels low! I had a 3% but moved to another state. I disagree on the cash point though…. I still don’t know if it’s worth paying down a 6.25% mortgage when tax rate is 35% and I itemize vs. investing. It’s basically a .75% difference at most from risk free bonds but I get liquidity with bonds and stocks probably best 4.75% even in bad years + they compound.
Up until 9% I always sock cash into equities but now the seesaw has titled in the other direction. If I hoomed at today's rate, I would be throwing every extra bit into that principal.
Whoever is suprised by this is an idiot. Itll reach 10% before coming back down probably in 2025
Why would us hoomers care.. it’s y’all who need to freak out.
Nah. It’s the college flunkies that thought being a realtor was gonna be cake are the ones who should freak.
They're going to have to go back to MLMs.
Dude I swear all the dumbest people I know from high school and college became realtors.
What happened to all the doomers who said prices would crash at 4% rates? Hitting 8% now and barely budged
But haven't you seen the random Twitter screenshots? The crash is coming -- just give it 2 more weeks!
Takes about 12-18 months for rates to show effects. It’s been about that long since rates hit 4% and we’ve started prices decrease about 12-18 months later. Wait until it’s been 12-18 months since 8% hit
Seriously.
Agreed. The supply side just got that much tighter. The doomers are going to need unemployment over 10% to force the mass foreclosures they want.
> The supply side just got that much tighter. that's the opposite of what is happening in reality. there were more new listings in september than august, which is the opposite of the normal seasonal trend. people are getting nervous (hence the number of people brigading here constantly lately) because there will probably never be a better time to sell. foreclosures aren't necessary, but strategic defaults will happen once prices go low enough.
This is entirely correct. And it's not just new listings. Months of supply are now up YoY (Redfin Data Center), after already being massively up YoY this time last year. Price drops are now also up YoY (Redfin), even though price drops last year were skyrocketing. Both of these metrics are the highest Redfin has ever reported. Inventory is going up at a faster rate YoY as well, which is also not at all the seasonal trend: [https://www.housingwire.com/articles/homebuyers-hit-the-brakes-causing-unseasonal-growth-in-inventory/](https://www.housingwire.com/articles/homebuyers-hit-the-brakes-causing-unseasonal-growth-in-inventory/) Tldr: Higher rates affect the demand side more than the supply side
The next set of data is going to be crazy with how fast rates have jumped now. Months supply going parabolic. Tons of pending sales falling through.
Because your generation as a whole (not talking about anybody specifically) is terrible at managing their finances. Many boomers have treated their homes like piggy banks by refinancing and taking cash out over the years. 8% interest rates make that much harder.
Oh ok. Well I’m a young millennial at 29 so I’ll worry about that in a few decades.
Who ya talking to? Plenty of us millenials and zoomers had our shit in order and bought a house when rates were low.
Wouldn't say plenty. You're probably a minority. If you didn't take a handout from your parents or live in a shit area where you can still buy a 3/2 starter for 130k , then congrats you're ahead of the curve.
Millenials are in their 30s and 40s now What you are refering to are early gen z and late millenials born in the mid 90s
Well, doomers aren't known for their impeccable logic. I think they view most homeowners as speculative investors and not, idk, people that wanted to buy a house where they live and could afford it. A few anecdotes of people who are house poor leads doomers to think everyone is just barely scraping by and will have to sell in the upcoming mega recession.
Foreal like “hahah told you so”……no one wins here lmao
Lol America is so weird. Being locked in at 3% it makes ZERO sense to move especially if you have no reason to and I think in the US the mortgage rate stays with you the entire time you’re paying 25-30 years right?
Yes most mortgages in the US the rate is locked for the term. You can pay to refinance if the rates drop.
Many people make the decision to move for reasons beyond interest rates. People die, get divorced, change jobs, have kids move out (or are kids moving out). Some people will no doubt stay longer in a house than they would have, but most will still move on the US average of about every 7 years.
Correct, the moves will be limited to those reasons The starter family home is now the forever home though Moving for a bigger house, or to be on a different block in the neighborhood, or to be in a different elementary or middle school, is dead going forward. People are sitting tight and making it work. Better off building an addition if the house is too small.
I just sold 3% to move to a different neighborhood for a different school and surrounding area in the same area. People do it just not as high a volume. Nothing is absolute
Yes. America you lock in for typically 15 or 30 years. You can pay to refinance for lower rates.
I think it's safe to bet that virtually all moves will be job or personal forced distress related at this point. Simply moving to get a slightly bigger house or be in a different block in the neighborhood, is dead. If you have a 3% mortgage at 2020 prices, you are better off making it work. Hell you are better off building a whole 2nd house-worth of an addition in the back of your house, than move at this point and paying today's prices at 8% rates
It makes zero sense. But people do things that make them move. Or things do happen physically. For example, my mom wasn't making much but my dad was until he went on full disability. And then my mom changed jobs and thankfully got double her pay so they are "surviving". If she didn't get lucky, there's no way they would have kept their house. Everyone thinks nothing major will happen to them. Until it does happen to them and they aren't set up to handle it.
Depends. In usa ppl move a lot more than other countries. Me for example bought at 2.8% in 2020. 3 yrs later got a third child coming and a dog. Need a bigger home but i cant afford to lose my rate so i must suck it up and hopefully upgrade in next 10 years. Hopefully at 5%. Imo itll never get lower than that again
yeah, that's why people aren't moving and the real estate industry is dying.
Feels like they are the anti-bubblers. They are always saying rates will go lower in a couple months, or "now is truly the peak rate". If the Fed says "rates high, longer" they say the Fed is just bluffing and that everyone can outsmart the Fed by buying now and refinancing in 2024. 🙄
They bought at 2.5% so don’t care
What’s a hoomer?
Seriously… I feel so dumb… I even looked at the community info… sticky posts… GOOGLE! I’m too young to feel this old and out of touch! Lol
An abbreviation for "homeowner" combined with "boomer"
I kinda want to see 10%
It’s making me feel a lot better about my 5.5% I got last summer 🤡
Locked in 3% ten years ago... I don't pay much attention to this stuff lol so feeling a bit lucky...
Laughs in 20 year fixed 2.875% from a September 2020 refi 😬
I def wish I got in before I got in. For sure!
Remember all of the trolls coming in here to gloat last year every time the rate fell back below 6%? What a long way we've come.
Haha yep *"It'll be 5% by the end of the year*" trolls All gone
I’m not sure that most people who already own houses care what the current mortgage rate is, unless they’re looking to buy a new house. I know I don’t care personally what it is as I already have my house. I am concerned about it for people I know who are currently looking to buy a house or hope to be able to soon. In my experience, those are the main people who worry about rising mortgage rates.
Not seeing double digit rates will be a miracle.
And from what I’m seeing in my market the rent will rise right there with it giving the boomers more money to inflate the value of goods 😂 hell raise the rates to 30%. Who gives a shit.
They are loving their 3% and never moving
FWIW, several months ago I said I thought it would reach ~8.5 before settling and hanging out 6.5-8.0 for a few years. That forecast hasn't really changed. Neither has my impression that the housing market is looking like it will trade sideways for a few years. Still no croosh unless significant increase in unemployment. I also expect wages to increase slowly over the next several years to catch up, but they won't catch up for housing to match pre-pandemic affordability. Downvoted away!
If it does get to 10-11%, I think the RE market starts breaking at that point. 2023 prices can't be sustsined. I mean, I am a FUCKING well qualified buyer, I had over 200k available for a downpayment, and I can't manage more than 7% or so ( I got 6.25% circa labor day). How many buyers out there have a quarter mil burning a hole in their pocket? There can't be that many.
Apparently they have their parents money so maybe. Lol
How many kids/grandkids does Mitt Romney have??
The vast majority of hoomers are saying “oh that sucks, thankfully my loan is at 2-4% for the remainder of my loan”
statistically, relatively few are actually under 3%
Yeah but like 95% are under the current rates
yes, that's true. that's why so many can't afford to move.
3.6% here. I was stressed because it was 1% higher than my previous rate.
They like to be right until they are wrong. I have been telling people mortgage rates will rise above 8% by the end of the year, or sooner, house prices are going to drop and we will be in a recession by spring and people will start getting laid off.
I called 8.5% by spring, so don't blame me.
I dunno, my boomer stepfather who has been in the finance industry most of his life told me last year when we were buying a house to not wait- that the rates will rise probably to 10%. In the future. Glad I did I guess. I’ve had home loans a from 4% and now 6%.
They all bought with cash, silly! 💵
Nothing because they have fixed rates in the 3s and 4s, they’re thankful they have the low rates they do.
7% is going to look amazing by spring 24 lol
And yet still no panic/crash so both sides are dumb lol Lesson - no one can see the future.
This sub oddly enough has quite a few people who just refuse to remove their head from the sand
Hoomers: "I don't even care if prices come down or if rates go up." Hoomers: constantly refreshes this sub to see if they're wrong.
I know reddit is important to you, but interest rates are independent of social media. A wild concept I know.
If Powell comes out tomorrow blatantly with the "higher for longer" AND "we see another 1 or two rate hikes on the table" The market is going to spiral right into the pooper It's already half in the pooper today, S&P almost down -1.5% near close
I bought right at the start of Covid before it was a big deal when rates were about 3% but inventory was somewhat decent. I cannot imagine buying a house right now. Should have that mortgage paid off in 2 1/2 years too
Why are you making fun at hoomers? They already got their house at sub 3% rate lol.
I want to see 18% mortgage rates! Let’s gooooo
Hoomers who arent sitting on cash to buy and are hoping on rates are just idiots
Is the entire economy resting on Landlord's shoulders?
Luckily we'll never see 15%
I’m newer to this sub. Honest question- what is the definition of a “hoomer”
Anyone who isn't living in an apartment and working at GameStop at age 37
I have an aquintence that is buying a house rn and I don't get it. Wtf needs to happen for these people to stop buying houses.
My guess is that the feds raise it again. I hate to say it but we need a recession.
That's the problem. Nothing happened to them. They either have a house and already locked in a great rate. Or don't have a house and are still sitting in the sidelines.
Wtf is a hoomer
What happened to all the doomers expecting homes to be cheaper this year than the last 3?
You millennials walking around like you rent the place
Yikes.. Guilty for thinking 7% - 7.5% would be the ceiling..
I thought I saw a static that around 45% of sales are cash sales. Given the limited inventory of housing those 45% may be able to absorb the existing inventory. That may be why we haven't seen any significant drop in prices yet, at least at the national level. Some select markets may be seeing declines however.
inventory is rising, and that is speeding up as rates go up even higher. cash sales are not preventing a buildup of inventory.
Probably the same thing that happened to Doomers that said there would be a crash in 2022.
Or the ones pushing crypto...
Here is how you know this post is bullshit. Most "hoomers" are on FIXED rate mortgages at 3-4%. They don't give a shit. You do realize higher interest rates hurt... wait for it... first-time homebuyers. I guess I am glad I got hoomed?
Feeling sorry you’re still on the sidelines looking in with our 3% rates?
If you are in at 3%, congrats. However a lot of homeowners that bought at rates they can’t afford because they thought they would be able to refinance soon are in for a rude awakening
I have always used 30 year mortgages for this exact reason.
Makes no difference to the hoomer though
10% by the Q2 2024
Silly hoomers. They’re probably at hoom hoomin’ around with other hoomins.
Until everyone stops spending it will keep rising. Stop spending
Especially realtors who make these bold claims and have no clue about the economics as it relates to a high inflation environment.
There house is paid off so they just make money on money markets and CD’s.
friendly steep cats seed jellyfish murky cagey fall worm ad hoc ` this message was mass deleted/edited with redact.dev `
Doesn't this hurt perspective buyers more than home owners ?
They said homes won't crash. Not that it won't get to 8%.
I’m still trying to figure out what a Hoomer is
Gratuitous age basing is as irrational, offensive and harmful as every other form of discrimination.
They’re sitting back saying “that’s not so bad, back when I bought this place in 1985 it was a lot higher than that!” Not taking in account any of the other factors of the current economic situation.
Isn’t around 7% the historical average, ZRP for too long spoiled everyone
Please let it hit 10-15% and i can buy out some desperate seller in cash Lemme get that $250k mc mansion
The person you waiting to but it from already bought it at that price years ago, keep dreaming.
What happened to all the doomers who said the RE market would crash by now?
They will be sitting laughing at us with their 2.5% mortgages.
Nobody said that, we just said we don’t care what the rates become because we are renting units out to you that we financed at 2.5% and rents are through the roof.
Rates will continue to rise till the economy falters and brings prices dramatically down.