US mortgage rates jumped this week, climbing closer to 7%. The move follows last week’s rate hike from the Federal Reserve, and the downgrade this week by Fitch Ratings agency of US sovereign debt, and of Freddie Mac and Fannie Mae.
Credit downgraded largely due to the J6 insurrection. Great job MAGAts. May you never be able to afford a home.
While J6 did factor into it, the rating is on the governments ability to pay back its debt, aka to not default.
The bigger issue, in this context, that I’ve seen is the republicans playing with the debt ceiling and threatening to not raise it. This directly makes it more likely the US government can’t/won’t pay its debt off.
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Opposite sides of the same shitbird coin.
It isn’t even the first time they’ve done it and caused chaos… or the second time… Or…
The debt ceiling is a bargaining chip when they’re not in charge.
Everything I read pointed more towards the government’s willingness to wait until the final hours to agree on a budget, narrowly avoiding default.
The market is fucked. The house I bought 3 years ago has doubled in value. It’s absolutely insane.
And you might be thinking, Great sell it! But then I have to find a new house that isn’t being swallowed up by businesses paying cash for them (good luck). And we will never again see 2% mortgages in our lifetime, so I’m just going to die in this massively overvalued house.
Aren’t your taxes going to explode?
My taxes have doubled in the six years we’ve had our house. Mortgage + taxes + insurance are still way cheaper than what dickbag landlords want to charge for an apartment half this size in the current market. It helps that I’m a DIYer and can fix pretty much anything that goes wrong with the house.
I don’t know what to say. You sound screwed but could have been screwed much worse. Sorry or congrats?
My landlord inherited the property and he is a lazy asshole. Every few years I change the dates on my lease and have him sign it. No plans to ever move. The lowest priced home that isn’t condemned in my city stands at half a million. A friend of mine was out bid on a home in the nearby city by 100k and in cash.
I don’t know what to say. You sound screwed but could have been screwed much worse. Sorry or congrats?
I think the bottom line is that almost everyone is screwed the way things are going. I’m screwed a lot less than other people since I got in at a (comparatively, now) low purchase price and great interest rate. My home insurance company has surprisingly not increased it’s rates for the last two years as well, so that’s a silver lining I suppose.
Not as long as it is not reassessed.
This is called “golden handcuffs” among real estate researchers.
Same wrt buying a house at the right time. We do plan on selling ours though at or close to retirement. We’re both working pension jobs so we’ll just buy a modest RV and live off of our retirements + the proceeds from the eventual house sale (if there’s still an America and American market at that point). That’s the plan, anyway.
The survey includes only borrowers who put 20% down and have excellent credit.
That’s rough.
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Yeah, I’m really curious what this is going to do to the overall economy. Personally, I’ll definitely be spending way less on non-essentials once payments resume…
My prediction is that the entertainment and hospitality industries are going to be the first to have massive layoffs.
And a lot of the people who work for that industry are college students, which will accelerate the issue.
As if that sector wasn’t hit hard enough with the virus. I know this is anecdotal but not one restaurant or tourist trap I have been to has the numbers it used to have.
“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s chief economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
Soooo glad I got in at 4%.
Did they dip? They were at 7.25 like a month ago
Yes they did. We visited 6.5% land for a while. I locked a lot of clients then to take advantage of it.
Well fuck. Wish I listed then.
House prices seem to be falling a bit which is nice but I expect it to pick up when we get closer to schools opening…
I can’t really respond with my thoughts here because I’m licensed in four states and all of them are experiencing different shifts in real estate, which I find odd.
California listings are selling quick while Utah is taking a long time to get sold. Just an example.
Around here I’d say the average price dropped about 10-15% and it’s pretty slow. My neighbor sold in a week for over asking a few months ago, now my other neighbor is only getting lowballs and it’s been on the market for 3 weeks.
I’m not a realtor but I’ve been in the market for the past few months so I’m on redfin daily
Thanks #GOP!
