Posted by Kane on June 18, 2022 2:45 amNEWS JUNKIES -- CHECK OUT OUR HOMEPAGE
Here comes the Carter era 2.0.
I remember my dad was so happy to get his real estate license in 1979, maybe 1978, unfortunately I can’t ask him now. Anyway I remember him unhappy that interest rates were clear up to like 18%. And who was president then? Jimmy Carter.
Meh… I remember when rates were over 8+%. People still bought houses then.. its not like NOBODY ever moves/sells/buys again, until the rates go down.. may take longer to sell, like 3+ months instead of ONE DAY like we have seen lately, but, if you have a good product, (ie: A HOME, not a “house,”), AND A REASONABLE PRICE, good location….someone will buy it…
Our first mortgage was at like 7.75% back in the 90s. We bought a stable house for our family, not a McMansion, no granite countertops, and yet we managed to have many good years and good times there. When interest rates started to change we refinanced at a credit union for 4.25 percent at 7 years. And paid it off.
Redi’d during the Trump era at 2.5%. Doubling payments to get it paid off in 13 years and be done. No other debt to my name and I plan of keeping that way.
Joe killing the real-estate market. As he knows it will not affect inflation.
Sold my house in December at twice what I paid for it.
Downsized and bought a smaller home for cash.
So thankful I no longer have that mortgage on my back.
I’m deluged with mail, phone calls and email from outfits wanting to buy my home and it’s probably for the express purpose of turning it into a rental. They are building whole new subdivisions in my area that will be rentals only. I see an instant ghetto in the making.
Just add aliens . Boom! Ghetto!
Don’t give up your home / equity!
Ghetto rentals are paid for by welfare. Another plan to bury America.
Housing market crash is coming soon…..worse than 2008. Folks it’s going to be bad.
Just your intuition or do you have some actual data to back that up?
He wants to buy your house at a discount so he’s trying to make you believe the price will go down tomorrow if you don’t sell to him today.
Sure, there’s always a demand for houses but, someone has to pay for those ‘overpriced’ houses. Kind of hard to do when your money isn’t worth the paper it’s printed on.
I live near DC where many neighbors, mostly govt employees, live in newly-built $2M houses. Our tax dollars are working hard to feed and luxuriate those who already have a lot. Take evil-Fauci as an example – the highest paid govt employee, paid more than the president of US. Somethings got to change.
People don’t use money printed on paper to buy houses anymore. It’s all electronic nowadays.
My 30 yr mortgage in 1992: 7.5% Cry me a river.
Mine, too! I remember those days, when everyone kept refinancing as the rates came down.
My 30 year mortgage in 1983 14 percent with perfect credit!!
and housing cost was less then 1/3
In 1994 mine was a 15 yr. mortgage that was just barely under 7%. Paid it off in about 12 years. Been mortgage FREE for 16. Yeah, CRY me a river too. But, things are different now. Our money isn’t worth what it used to be. Inflation was around 2.67% in 1994. Far cry from 8.5% we see now (and climbing)
Yep! The mortgage rates were plunging two years ago. I refinanced 15 yrs at 2%.
housing price in 92?
In 1993, we paid $118,500 for a 3/2, two story, around 1850 square feet. Double lot. Can one even buy a mobile home for that now?
Sure can. Atleast we did. 10 acres for 17 grand, and built a 5000 square foot home from reclaimed materials, all up 35 grand. Learn some skills, how to build and fix, and thisarket means nothing to you.
I remember when I refinanced for 6% and thought I would never get a rate this low again.
I bought my first house in 1998. My 30 year note on the house was fixed at 6.375%.
I was delighted to get that rate.
For a 140-150k nice house. That same house is now 400k
My first mortgage was 9.5% 30 year in 1989.
We had a 68,000 home on 9.5% mortgage paid 1480 piti. 1240 sft cape cod we walked that mortgage down to 5.5% over ten yrs ended up paying it off. Sold it for 180k. Funny thing is how many folks told us when we first moved in what a mistake buying a home in a recession was and that smart money was on renting. We had real estate attorneys telling us that.
NOT TRUE! MUST BE A MISPRINT!
Biden, Harris, Yellen, and their talking parrots on tv guaranteed INFLATION is just “transitory”!
PLEASE CORRECT THE HEADLINE CFP!
Imagine having an ARM loan
People are paying an arm and a leg for a house nowadays. FJB.
I tried and failed
Been in the works…
Housing crash is coming. About a year later than I thought it would happen but it’s finally here.
Based on what?
Florida is immune.
It’s resistant but not immune… The biggest loss of nationwide housing starts in the cape coral area of Florida down 35% in three weeks.
My son and his wife are die hard progressives. They are in the process of moving to a better neighborhood, however these interest rate increases might quash that. I warnedThem both this might happen, almost to the point of disintegrating our relationship. The 30 yr has gone from 2.99% to 6.2% in 2 months. They hate Trump and all conservatives. I’m heartbroken for them, however this is a life lesson they have to endure. When I spoke of Jimmy Carter, their eyes glazed over as if I was making history up. My son is an Archeologist.
And apparently dumber than a box of rocks.
They should have gotten on the Trump train years ago.
They can “hate Trump and all conservatives” all they want. As long as they’re on board with Pedo-Joe and the Cackli’ Ho, they can pay the higher rates and still feel good about themselves.
By a “better neighborhood”, are they seeking to get away from the dregs of the ghetto? Because Pedo-Joe is transplanting those into ALL those better neighborhoods. Sometimes we do get what we ask for.
Don’t be heartbroken for them. You taught them well and they “chose” to not listen. America is all about ‘choice’.
Good day to you, Artlessone.
Going to need more government/taxpayer salaried jobs
Hey that’s me! Of course everyone knows that non-government workers are such effective workers. /s
I bought my first home with a 6.5% mortgage (1994) house cost 70k .. The problem isnt the rate..its the house price…
During Jimmy Carter it was 16%, Joe has a bit to go. I’m sure he’ll make it.
In one of my Finance classes the Professor did the calculations on his brother who bought a house in Carter years and showed how he paid the principle 3x over. I thought it had to be bullshit but he proved it.
Not hard to prove. I’m hoping his brother refinanced.
Brandon says “Hold my beer”
Work transferred me. 2.6% last summer. Super inflated housing price still made house barely affordable for a blue collar worker. I sympathize for the people coming in behind me. Rental prices are hardly affordable too. Californians who have moved to the area know that they are responsible for pricing out the local population. They have admitted as much, but said that they couldn’t tolerate being in CA anymore. This. Oldest size town will be the next boise. Sad.
This modest size town*
Cool name. Same situation here in Utah. What state u b n?
I did mine at 15 yr. Its now paid off. My payments were only $50 more a month. Helped my daughter for a 15 yr mortgage. The sooner one can get it paid off, the better.
well once you lock in the low mortgage rate, inflation turns out to your advantage over time. financing is frozen cost and the inflation increase in your house value is a good thing. until the housing market crashes, you hope not.
Mortgage brokers may need to learn to code.
Goodbye residential building. The good times are over.
Nah – the gov can only jack up rates to fight inflation for so long before their corporate overlords demand they stop. The stock market reacts negatively to rising interest rates – keep your eyes on it.
I struggled to buy my first home in 1993 after ten years of saving, when interest rates suddenly dropped to 7 percent after two decades of being higher, including in the double digits. I don’t think it has ever been easy.
I’ll add to that … many sold homes at markups that blow the mind (buyers are crazy)
many are sitting on the cash proceeds ready to pounce
Looks great on the liberals, but I feel sorry for normal people just trying to raise a family.
Best website to view daily changes is here https://www.mortgagenewsdaily.com/mortgage-rates
Insane that it took this long. 6% is still a good rate
Over half the people who were in the market 2 months ago can longer afford it.
Real monthly payment on US average house of 350k has gone up over 40% or $650 a month in the last 6 months.
The Big Short 2022
Glad I paid my house off…
At least now the savings interest rates will higher.
3 yr rate was just raised to like 3.25% at my CU. It was 1 and change until this morning.
Dang that war…….
start picking out the curtains for your pod
If you have room for curtains in your pod, it’s too large. They’ll have to downgrade you.
“… Doubled since January”. Rent rates are already skyrocketing. This should scare the $#*+ out of people.
Trust the process – all part of the transition (to Venezuela style living) #turnonyoursarcasmmeter
key word “should.” But the reality is that it doesn’t. Covid scared the bejesus out of people, but not having a financial future in the greatest country on earth… nah, just give us Netflix and a new Star Wars trilogy and we’re fine.
If 40% of the people aren’t paying for their own food…then it would follow 40% aren’t paying for their full housing costs either.
The scary part will also be next year when the bubble crashes and people own a house worth less than when they bought it
i got 2.25 % thanks fauci ………….no respect I’m telling ya
i asked to lock in and she locked me in the basement
You think you’re clever- but you’re actually quite economically illiterate. It’s is absolutely stupid to own real estate outright, especially when in the last couple years you could have borrowed at 2.85% on a fixed 30 year loan.
Real estate doesn’t make people rich- the DEBT from real estate makes people rich. Leverage and arbitrage makes you rich, not buildings.
I disagree. I think owning anything is the best way to go as you’re no longer moved by the shifting sand of the stock market or economy. He will forever have hard assets that will do nothing except increase in value. He can manage them however he wants to make more money while they’re increasing in value. If he owns multiple homes outright, he’s in a better spot than roughly 75% of the country, which means if he’s economically illiterate than the vast majority of Americans are just plain retarded.
Most Americans are retarded. 1. Arbitrage- that’s how banks make money.
2. Leverage- that is called real estate investing.
But whatever. Most people will never understand this stuff. A good book version to help people- its like a comic book- but is correct is Rich Dad , Poor Dad.
Trump got rich from leverage and arbitrage.
With inflation this high I will hold on to our mortgage as long as possible.
My next door neighbor (hoarder, cat collector, democrat freeloader) hasn’t paid his mortgage in two years thanks to all the covid stimulus programs. Pre Covid his house was up for public auction for $150K cash but no one was buying homes. Homes have doubled in price in our area but this loser will be our neighbor forever.
Remind him to get all his booster shots for covid- he will be gone within 3 years
Yep he loves his boosters, he promoted the “too soon to reopen” nonsense, easy when you don’t go to work. Funny all my boosted coworkers have been constantly sick and using all their sick time.
And here we are like idiots paying our bills!
Joe Biden’s America… But he will tell you the economy is in good shape.
from his dining room table with his cup of Joe and warmed cookie, things are just peachy in the land of the free.
think of poor Jill changing the pudding filled depends, I love that image…
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