Posted on 05/05/2023 3:27:45 AM PDT by CFW
Home sales plunged 21 percent in the United States during the month of April, as new prospective homeowners appear to be scared of being 'locked in' to higher mortgage rates.
The number of new listings continued what appears to be a trend, as listings are down 31 percent from 2019. The 2019 figure was used as a benchmark as it happened before the pandemic.
In April 2021, home listings were up 41.5 percent over 2019.
Mortgage rates have gone over 6 percent since September of 2022, causing the once-booming housing market to finally settle.
(Excerpt) Read more at dailymail.co.uk ...
Our first house we bought in the mid 1980s had a 11.5% mortgage. We survived.
I fail to see the logic of people being afraid of being “locked in” to a high mortgage rate. Either rates continue to go up and your “locked in rate” looks better and better, or rates fall and you refinance.
Its a double whammy. Prices have not come back down to anything remotely close to where they were 2 years ago BUT, interest rates are now much higher. Only a sucker would lock himself into high prices and high interest rates. Its got to be one or the other - not both.
Yes, of the two - prices and interest rates - its much better to buy when prices are low but interest rates are high. After all, interest rates can always come back down at which time you can refinance. If you buy when prices are high, you’re just stuck with it.
I’ve been wondering if some or all of NYS’s just passed nat gas stove ban isn’t just an attempt to goose existing housing sales and/or new housing starts...
“Our first house we bought in the mid 1980s had a 11.5% mortgage. We survived.”
Our interest rate was even higher but luckily we were able to pay it off in a few years. And our “first” house financed/built was our last and I sit in it now at the kitchen table that was handed down to us by my in-laws. We furnished our house with hand-me-downs and “give-aways” from family members and didn’t insist on going in debt for high-dollar furniture and appliances.
Now, people want to purchase a house that’s above their financial ability to pay, then go in debt further to furnish it much like those homes featured in a “Better Homes & Gardens” magazine. They will then be in debt for the remainder of their lives.
BidenDepression 2023
By the house, date the rate.
Why get a 30-year when the M2 money supply is shrinking? Declining M2 usually portends falling mortgage rates. But harder to get a loan too.
Having over 700 credit score is needed. Or seller financing (FSBO).
Thanks Biden.
The logic is jobs. You have to move for jobs, no guarantee you can find a decent renter, you can be replaced by ai or Indian in india, local taxes, crime, etc etc.
It may have been easier because adjusting for inflation that house cost 50% less than it does today.
https://inflationdata.com/articles/inflation-adjusted-prices/inflation-adjusted-housing-prices/
1980s
Real jobs
US industry
Ronald R.
Prices: Real estate, transportation, utilities, borders.
With Biden’s new mortgage rules, those with high credit scores will pay more so those with bad credit scores will pay less. It’s all in the name of DEI. This will kill the banks and housing industries forcing people to rent.
Exactly.. these folks have a low interest rate on principal that is grossly over paid inflated. Interest can be paid down, principal cannot.
Thank goodness my home sold last year before the interest rates rose and demand was high. Just lucky we were.
The number of new listings continued what appears to be a trend, as listings are down 31 percent from 2019.
Who thinks rates will fall any time soon?
They may wait themselves out of the home they want.
If rates drop - they can re-fi....but inflation and other issues might break them - all part of the plan...
But my wife and I were also making much less money back then, too. So as a percentage of our income, the house prices are about the same today.
Unless you're a hamburger slinger at Micky D's and want to buy a McMansion.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.