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Old 05-12-2022, 09:25 AM
334 posts, read 172,509 times
Reputation: 520


Originally Posted by TimtheGuy View Post
Only "a few rich people" own buy homes by taking out home loans??

No. Everyone and their cousin-in-law tried to jump on the bandwagon, and that caused home prices to rise in 'value' during the past few years.
The reason the whole thing is volatile is two-fold:
1. Large proportion of those see it as an investment and not a place to live. As soon as they are upside down, they'll try to get out of it, thus leading to increased supply and lower prices.
2. Even those who bought a place to live may be one layoff away from a foreclosure because they bought more of a house, well, because they could.

Of course, fed may step in and bail them out, directly this time (in 2008 they were bailed out indirectly via saving the banks; let's not forget that home prices never went down to where they belong because ZIRP). As long as there are avenues to treat home as an investment (second mortgage, second property, etc.) the situation will never be normal.
Tighten that, and we will have stability in one of the most important things in life. But that would make too much sense of course.

Old 05-12-2022, 08:06 PM
3,216 posts, read 1,682,361 times
Reputation: 6115
Some of the inflation is caused by supply chain issue not created by low interest rate. While the Fed can control leveraged debt they can't fix inflation caused by geopolitic and supply chain issues. It's probably still gonna keep hurting the middle class until the government print more checks.
Old 06-08-2022, 08:32 AM
39 posts, read 35,098 times
Reputation: 54
Is it a huge deal that the interest rate is higher, if you are someone that no longer likes paying rent to someone, throwing it away?

If you get a loan now, is it reasonable to expect that the rate would decrease later and then you could refinance the mortgage on the lower rate ?

I would think between renting and buying, it would still be better to buy.
Old 06-08-2022, 08:35 AM
26,194 posts, read 21,605,372 times
Reputation: 22772
Since the start of this thread real estate has been ripping in a lot of places around the country and qqq/spy are up 76%/53% respectively
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