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Old 09-20-2018, 11:22 PM
 
Location: Washington State
15,421 posts, read 8,070,923 times
Reputation: 13207

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Quote:
Originally Posted by craigiri View Post
This is of little concern to me (in fact, it's a positive since I am more often on the lending side), but I can't help but wonder how it hits the forgotten man and woman. Stable wages....at most up 1%, yet fuel up 10-20% and interest rates up 30-60%.

I can't imagine a lot of "free income" showing up in the bank accounts of the masses.
https://www.cnbc.com/2018/09/19/week...ions-rise.html

As it stands, the housing market in many areas has barely recovered (if that!) from the Great Recession, now this means the average person can afford less...

It looks like the Citibank Plutonomy memo is more true than ever. There is "us" and then there are the rest (most people!).....
https://delong.typepad.com/plutonomy-1.pdf
We have never done better....thanks to Trump!
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Old 09-21-2018, 06:42 AM
 
Location: Annandale, VA
9,458 posts, read 7,618,680 times
Reputation: 6056
Quote:
Originally Posted by corpgypsy View Post
Middle-aged mom: Our age is indeed showing. My adult children's eyes glaze over when I try to tell them the elated feeling my husband and I had on one relocation. It was the time we were doing cartwheels because we found a builder who was offering an 11 1/4 % rate, when the average in the country was 14%.
And one of those so called children is married to a RE broker. They don't believe or understand.
Yes, but back then even credit card interest was deductible.
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Old 09-21-2018, 07:59 AM
Status: "It takes a lot of balls to golf like me" (set 18 days ago)
 
Location: Charleston, SC
3,997 posts, read 3,207,134 times
Reputation: 3421
Quote:
Originally Posted by ChristineVA View Post
Well I hope the home prices go down in response to the increase in interest rates. They are VERY high where I am.
I'm in one of the hottest markets in the country here in Charleston, SC. We are almost at the historic levels of late 2005 early 2006 as far as Months Supply, Days on Market, Inventory levels, and our prices have NEVER been higher than they are now. For about 2 years now I've been amazed at the push that we are still getting out of this market. The biggest difference between now and the beginning of the crash in 2007 is that banks have been waaaay smarter about loaning money and the folks that are now pushing the market are in most ways able to pay for their homes. They are hardly any foreclosures in my market and short sales don't exist.

Because it's the "slow season" which happens every year around the holidays, we have seen market prices cooling a bit, which could be in response to the rising interest rates, or it could be due to the time of year, but I truly don't see anything in the future that shows me that a recession is coming soon.

Charleston is a bit of an enigma though, we have around 60 families per day moving here, and inventory/construction cannot keep up. Where there is low inventory and high demand, there will always be high prices and competition driving the market.
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Old 09-21-2018, 08:16 AM
 
4,970 posts, read 2,506,959 times
Reputation: 2731
Quote:
Originally Posted by Freak80 View Post
Blind partisanship.

When the economy improves, interest rates are supposed to go up to prevent inflation. Thatís normal Fed policy.
The peasants are making to much money. Quick double their interest rates!

:handrubbing:
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Old 09-21-2018, 08:30 AM
 
Location: Boston, MA
10,957 posts, read 7,739,696 times
Reputation: 5323
Quote:
Originally Posted by craigiri View Post
This is of little concern to me (in fact, it's a positive since I am more often on the lending side), but I can't help but wonder how it hits the forgotten man and woman. Stable wages....at most up 1%, yet fuel up 10-20% and interest rates up 30-60%.

I can't imagine a lot of "free income" showing up in the bank accounts of the masses.
https://www.cnbc.com/2018/09/19/week...ions-rise.html

As it stands, the housing market in many areas has barely recovered (if that!) from the Great Recession, now this means the average person can afford less...

It looks like the Citibank Plutonomy memo is more true than ever. There is "us" and then there are the rest (most people!).....
https://delong.typepad.com/plutonomy-1.pdf
Housing prices will come down.
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Old 09-21-2018, 08:43 AM
 
1,964 posts, read 663,884 times
Reputation: 2676
Quote:
Originally Posted by middle-aged mom View Post
I carried a 16.5% mortgage on my first house.

The monthly P&I payment on that same property today is less than what I was paying 37 years ago, despite the market value increasing 4- fold.

Yep, I bought my first house in 1985 and, IIRC correctly, the mortgage was 14%. Of course, I had CDs at my local S&L that paid 12%, which lessened the sting a bit.
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Old 09-21-2018, 08:45 AM
 
1,964 posts, read 663,884 times
Reputation: 2676
I feel bad for all the folks who paid off their 3 to 4% mortgages early. The lost opportunity, even had the money been invested in a DJIA index fund, is staggering.
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Old 09-21-2018, 11:08 AM
 
2,962 posts, read 2,879,731 times
Reputation: 2839
Quote:
Originally Posted by craigiri View Post
As it stands, the housing market in many areas has barely recovered (if that!) from the Great Recession, now this means the average person can afford less...
At first, I was questioning the part where the market "barely recovered." My house is nearly double in value. I then checked the sale history of said house. Turns out, the value today is still less than its value in 2007 (which is before I bought it). And I'm not the only one.

So yeah, depending on when you bought, the idea of the housing market having recovered can be very different to different people.

As for me? I probably won't buy another house until my kids are out of the house. I'm paying 3.25% on a 15-year. I think I'd rather just finish that up then buy a more expensive house at 6% interest.
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Old 09-21-2018, 12:49 PM
 
9,898 posts, read 11,403,209 times
Reputation: 5663
Quote:
Originally Posted by dspguy View Post
At first, I was questioning the part where the market "barely recovered." My house is nearly double in value. I then checked the sale history of said house. Turns out, the value today is still less than its value in 2007 (which is before I bought it). And I'm not the only one.

So yeah, depending on when you bought, the idea of the housing market having recovered can be very different to different people.

As for me? I probably won't buy another house until my kids are out of the house. I'm paying 3.25% on a 15-year. I think I'd rather just finish that up then buy a more expensive house at 6% interest.
I live in the DC area, which right now has a very hot market. But that recovery has really only been in certain pockets and not the entire area, as it was before the housing bubble burst.

I bought my house in 1994 so I've been in it a long time. In 2006, the value was WAY up. After the bubble burst, the value went down by approximately $250,000. The value is back up but it is still not at its 2006/2007 high and is about $100K away from "recovering." Fortunately, I never went underwater.
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