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(CNBC)   Mortgage demand falls to the lowest level in 22 years as short-term personal-use gasoline contracts gain traction   (cnbc.com) divider line
    More: Followup, Mortgage, Mortgage rates, Refinancing, average contract interest rate, lowest level, mortgage demand, Total mortgage application volume, housing market  
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341 clicks; posted to Business » on 08 Jun 2022 at 12:44 PM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



18 Comments     (+0 »)
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2022-06-08 12:56:11 PM  
Fark user imageView Full Size
 
2022-06-08 12:56:25 PM  
Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.
 
2022-06-08 12:56:26 PM  
Golf clap on the headline subby!
 
2022-06-08 1:09:14 PM  

madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.


The rates aren't that high.
 
2022-06-08 1:10:26 PM  
What?!?! You mean to tell me if you make something more expensive, demand falls?!?!? Who could have predicted this?????

Seriously, though, we keep getting these breathless need articles in here while completely forgetting that this is literally the intended result. We're in a bit of an asset bubble, and housing costs are growing unsustainably as a result. We're now trying desperately to deflate that asset bubble without destroying the economy, and part of that is slowing house price growth.

Mind you, we're not trying to lower home prices, because that's just not going to happen -- more people want homes than there are homes available. I know everyone is all "Pop, you asshole," but I think what people don't realize is that if home prices are dropping by any significant amount, the economy has already gone to shiat so badly that you're probably not going to be in any position to buy a home, anyway. Hell, if housing dips by more than 10%, most of us will be lucky to be able to afford to eat, let alone get a mortgage, because at that point we're in wholesale Armageddon.
 
2022-06-08 1:18:05 PM  

hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.


Historically they aren't. In the Millennials memories they are. Prices are also still very high as well so the payments are putting housing out of reach.
 
2022-06-08 1:20:15 PM  

madgonad: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

Historically they aren't. In the Millennials memories they are. Prices are also still very high as well so the payments are putting housing out of reach.


My issue issue is that there is a fourth thing not being mentioned in the post I quoted: stagnated or deflated wages.
 
2022-06-08 1:38:55 PM  
Ah yes another article that amounts to "Everyone with a lick of sense and ability bought a house or refinanced one while rates were under 3%, so we're just shocked that people are less willing to buy a house and move if they don't have to, because they'd be paying more for the same house because of the higher interest rates and housing price spikes."

Quelle-effing-surprise.
 
2022-06-08 1:58:58 PM  

hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.


Fark user imageView Full Size
 
2022-06-08 2:19:00 PM  

hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.


Historically, no.

But rates for a 30 year fixed rate mortgage have almost doubled in the last few months, while asking prices have stayed close to those that were baked in over the last few years of ~3% loans. Until that pricing corrects the rates are very high for how much you need to borrow.
 
2022-06-08 2:28:09 PM  

Target Builder: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

Historically, no.

But rates for a 30 year fixed rate mortgage have almost doubled in the last few months, while asking prices have stayed close to those that were baked in over the last few years of ~3% loans. Until that pricing corrects the rates are very high for how much you need to borrow.


With the exception of areas with a lack of housing, the prices will plateau at best.

This will not do anything for new homebuyers, but there needs to be a tax return for houses in (hopefully formerly) redlined neighborhoods. If Trump can get tens of millions for losses, a black family can get the difference in price for the same house in a white neighborhood.
 
2022-06-08 2:29:41 PM  

hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.


The rates aren't, but the prices more than make up for it. Assuming 30 year mortgage:

A $120k mortgage at 6% interest would only be $6k per year, or $500 per month. Total of $726 per month

A $250k mortgage at 4% interest would be $15k per year, or $1,194 per month. And good luck getting a 4% 30 year mortgage right now.

tl;dr: it's not just the mortgage rate but the house price in general
 
2022-06-08 2:30:54 PM  

machoprogrammer: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

The rates aren't, but the prices more than make up for it. Assuming 30 year mortgage:

A $120k mortgage at 6% interest would only be $7200 per year, or $500 per month. Total of $726 per month

A $250k mortgage at 4% interest would be $10k per year, or $1,194 per month. And good luck getting a 4% 30 year mortgage right now.

tl;dr: it's not just the mortgage rate but the house price in general


Whoops, my interest math was off
 
2022-06-08 2:40:03 PM  

machoprogrammer: machoprogrammer: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

The rates aren't, but the prices more than make up for it. Assuming 30 year mortgage:

A $120k mortgage at 6% interest would only be $7200 per year, or $500 per month. Total of $726 per month

A $250k mortgage at 4% interest would be $10k per year, or $1,194 per month. And good luck getting a 4% 30 year mortgage right now.

tl;dr: it's not just the mortgage rate but the house price in general

Whoops, my interest math was off


Interest rate in 1981 was 16 percent. You average cost for a house was 68.

30 year got you 914/month at that rate.
 
2022-06-08 3:01:07 PM  

hoodiowithtudio: machoprogrammer: machoprogrammer: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

The rates aren't, but the prices more than make up for it. Assuming 30 year mortgage:

A $120k mortgage at 6% interest would only be $7200 per year, or $500 per month. Total of $726 per month

A $250k mortgage at 4% interest would be $10k per year, or $1,194 per month. And good luck getting a 4% 30 year mortgage right now.

tl;dr: it's not just the mortgage rate but the house price in general

Whoops, my interest math was off

Interest rate in 1981 was 16 percent. You average cost for a house was 68.

30 year got you 914/month at that rate.


For a few months, yes. But then you refinance lower. The high prices for houses are guaranteeing a very high monthly cost for 30 years
 
2022-06-08 3:49:46 PM  

hoodiowithtudio: madgonad: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

Historically they aren't. In the Millennials memories they are. Prices are also still very high as well so the payments are putting housing out of reach.

My issue issue is that there is a fourth thing not being mentioned in the post I quoted: stagnated or deflated wages.


The inflation we are all experiencing right now is partially due to 'some' wage growth. I know that it is a big stretch, but when a Burger King in flyover country is starting out at over $15/hr you shouldn't be surprised that the price of the Whopper is going to go up. The cost of land, raw materials, and energy are also driving up prices.

/at my business pretty much everybody's performance wage increase went way up in Q1. I think the lowest raises were 4% while the highest were double digits. Normally 1-5%.
 
2022-06-08 5:44:23 PM  

hoodiowithtudio: madgonad: hoodiowithtudio: madgonad: Low inventory. High prices. High rates.

For once Americans are actually being rational in choosing not to buy.

The rates aren't that high.

Historically they aren't. In the Millennials memories they are. Prices are also still very high as well so the payments are putting housing out of reach.

My issue issue is that there is a fourth thing not being mentioned in the post I quoted: stagnated or deflated wages.


And blackrock bought up all the housing.
 
2022-06-08 6:04:01 PM  
Just a little bit ago I got a call from some crazy lady asking if I wanted to sell my house. The one I bought in 2019 before prices went all the way nutso, and refinanced in January of '21 to get a sweet interest rate AND get rid of PMI.

Yeah, right, crazy lady.
 
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