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TexasDem69

(2,317 posts)

11. If I save $20k on a home

Wed Oct 18, 2023, 06:31 PM

Oct 2023

Or whatever I might save with a lower price, it comes nowhere close to offsetting the difference between a 3% mortgage rate and an 8% mortgage rate on a $300k, or $400k, or whatever loan. The payment on a $350k loan with 20% down at 3% is $1,476 a month. The payment on a $300k loan with 20% down at 8% is $2,025, almost $600 a month more every single month, or $216k more over the life of the loan. Mortgage rates are a disaster right now, both politically and for home buyers, and we shouldn’t pretend otherwise. I’d like to move, but simply cannot afford to give up my 3% mortgage rate from 2 years ago.

Oh, and I don’t know anyone who gets variable rates anymore after the subprime mortgage disaster

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Six117

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The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar [View all] mahatmakanejeeves Oct 2023 OP

Good news - that should help bring housing prices down. Nt Fiendish Thingy Oct 2023 #1

Housing prices rarely come down significantly Shermann Oct 2023 #2

Prices rarely come down significantly, except when they do Fiendish Thingy Oct 2023 #5

Population numbers rarely come down significantly as well Shermann Oct 2023 #6

Are you a realtor? Fiendish Thingy Oct 2023 #8

The realtors (and Dave Ramsey) are correct, it's a statistical fact that average home prices rarely drop Shermann Oct 2023 #10

Take a look a this graph of the median home sales price: Fiendish Thingy Oct 2023 #13

That is a median sales price of houses sold Shermann Oct 2023 #14

The "bias" you refer to is the reality of actual sales prices Fiendish Thingy Oct 2023 #16

Except for when appraising houses that haven't sold in a while nt Shermann Oct 2023 #18

They did during the Great Recession. roamer65 Oct 2023 #32

Or people with existing low interest loans will to stay pat and not put their homes on the market cstanleytech Oct 2023 #4

There are always people who need to sell Fiendish Thingy Oct 2023 #7

That's us right now. AllyCat Oct 2023 #28

Not sure, as it will more lock the market up and have less sales IbogaProject Oct 2023 #21

Depends on how much equity they have Fiendish Thingy Oct 2023 #27

What about those who'd wish to relocate? IbogaProject Oct 2023 #37

It's far better than double digit inflation, which is the alternative. Nt Fiendish Thingy Oct 2023 #43

Not Good news hueymahl Oct 2023 #3

If more young people can afford to buy a home, that's good news. Fiendish Thingy Oct 2023 #9

If I save $20k on a home TexasDem69 Oct 2023 #11

Median price is down to $416k from $479k at end of 2022 Fiendish Thingy Oct 2023 #15

And none of that answers the fact TexasDem69 Oct 2023 #19

You keep forgetting something Fiendish Thingy Oct 2023 #22

A decrease in home prices might be good for the buyer TexasDem69 Oct 2023 #23

Simple choice: 8% mortgages or 12% inflation Fiendish Thingy Oct 2023 #25

More money going to the banks vs. the homeowners AllyCat Oct 2023 #39

Your choice: 8% mortgages or 12+% inflation (currently at 3%) nt Fiendish Thingy Oct 2023 #44

You have sidestepped the my point. AllyCat Oct 2023 #45

Would a 15 percent mortgage rate then be good news for home buyers? MichMan Oct 2023 #26

Mortgage rates in the early 80's were that high or higher Fiendish Thingy Oct 2023 #30

But the cost of a house in the 80's was a lot lower. progressoid Oct 2023 #34

High mortgage rates greatly increase the cost of buying a home. Not good. TygrBright Oct 2023 #12

Higher rates increase the cost only for an unchanged price Fiendish Thingy Oct 2023 #17

Which is bad for the homeowner? TexasDem69 Oct 2023 #20

That's the problem- thinking of your home as an investment Fiendish Thingy Oct 2023 #24

You have a very strange view of this situation. Homes are an investment. LymphocyteLover Oct 2023 #40

This is going to have impact on voters if interest rates dont go down by election day. honest.abe Oct 2023 #29

It will have less impact on voters than if the fed had not raised rates Fiendish Thingy Oct 2023 #36

Regardless, voters won't know that. honest.abe Oct 2023 #41

pfft. go back farther. my aunt bought a house in 84 i think, late 70's is a twin to now. pansypoo53219 Oct 2023 #31

Gonna be a bit of a grinch and show my age... raising2moredems Oct 2023 #33

Change the interest rate for primary homes Puppyjive Oct 2023 #35

Buy when interest rates are high and prices low. C Moon Oct 2023 #38

Date the rate, marry the price IronLionZion Oct 2023 #42

Just my luck SidneyR Oct 2023 #46