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TygrBright

(21,375 posts)

12. High mortgage rates greatly increase the cost of buying a home. Not good.

Reply to mahatmakanejeeves (Original post)

Wed Oct 18, 2023, 06:36 PM

Oct 2023

They also make it difficult for homeowners wanting to "right size" (buy larger or smaller) to move, keeping housing stock static and blocking market flow.

They also increase the cost of equity loans and re-financing, making it more difficult for people to pay for major maintenance costs like roofing, siding, etc., and degrading the condition of housing stock.

This will come around to bite "Bidenomics" in the campaign next year, so I'm really hoping there is a plan to turn around the rate trajectory.

worriedly,
Bright

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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