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Well that is the problem. When you fear monger others ,the less knowledgeable may get scared out of acting and that can effect meeting their financial goals . Believing all these conspiracy theories have always left you a whole lot poorer for it
Well that is the problem. When you fear monger others ,the less knowledgeable may get scared out of acting and that can effect meeting their financial goals . Believing all these conspiracy theories have always left you a whole lot poorer for it
I think the biggest problem is that the government won't keep its hands off the economy. They deliberately adjust the prime using as sort of a throttle and brake, and that QE stuff is just crazy.
OK. Then what precisely *should* the govt be doing(?)
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The biggest mess of all (that I recall, and recently) was when Sen. Frank and I forget who else, deliberately loosened the mortgage qualification criteria, letting people buy houses with only a few percent down payment. People began buying even multiple houses, speculating since having such a low down payment accelerated housing prices. That was the bomb. The fuse was lighted when financial institutions began bundling mortgages and sold the bundles as derivatives. That last straw removed any incentive for lenders to not make crazy loans to people who couldn't afford the houses. Eventually the housing market couldn't sustain the huge housing prices and a few then many loans failed. The avalanche began and the cascades dumped massive numbers of houses into foreclosure. The housing bubble collapsed. That caused the recession of 2007-2009. And the government's solution? They bailed out the banks.
You are way late to this party, amigo.
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I still think lending is too loose, and I would like to see the regulations changed to increase the minimum down payment to something more than a few percent. Oh and what's worse, sellers are often asked to contribute to buyer's closing costs, and I'm not sure but I suspect some people are buying houses with nothing more than a fair credit score. I'm pretty sure the derivatives have been prohibited. If it were up to me I would force lenders to slowly raise the minimum down payment (to avoid shocking the housing market) up to maybe 10% minimum down payment. That would restrict house sales to mostly people who have good personal financial skills. I think that's about what it was before this craziness started. The buyer should be forced to show that 10% in available cash.
*******s. It’s much harder now to get loans. And what is this babbling about sellers choosing to pay part of the buyers closing costs? So what.
There are a lot of reasons why someone could only put down less than 10%. Apparently you are ignorant of some of the incredibly high prices housing markets where high paying jobs are also located.
Derivatives are still very much alive, btw. Underlying housing market is a lot different this time though. Now there is more demand than supply and much tighter lending restrictions.
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I'm not buying the idea that every American should be able to own a house. Every American has the right to earn enough money to buy a house, but the government shouldn't just keep lowering the criteria until a hamburger flipper supporting a family of 4 can afford a house.
Burger flippers aren’t getting mortages.
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I may be wrong but I think the government should quit messing with the economy and let the free market establish prices and interest rates. The government was responsible for creating the housing bubble and they were responsible for creating a situation where the bubble eventually had to burst.
Careful what you wish for.
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I lost my career in 2007 because of the recession. Fortunately I had no mortgage so all it affected was the paper value of my house, but I didn't sell it until several years later when the market had mostly recovered. And I had to get into a different line of work. I started my own business and I've been a sole proprietor ever since.
Sorry about that, but the reality is that it’s not practical for most people to start their own business.
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I think the government is responsible for much of the instability in housing prices and in our economy in general. They just can't quit meddling and they're playing with dynamite.
Proof?
Last edited by damba; 10-08-2018 at 06:44 PM..
Reason: Added info
Most people can avoid PMI with 80-10-10 mortgages, rather than an 80-20.
Even if someone is stuck paying PMI at the outset, it many cases it can be eliminated once your equity is over 20%. Even if you don't refi, you wouldn't be stuck paying it for the entire length of the loan.
It’s a little more complicated than what you wrote to remove PMI. N some cases you need to refi to get rid of it. And if the rate is higher than what your present payment is you’re not gonna refi.
We finally sold/closed house we bought about 4 yrs ago for my husband's older sister (mid 80s) to live in...
She paid us small amount to cover insurance and taxes and over time her health deteriorated
I was glad to sell but wish we would have broken even after realtor's fees--
The buyer was all cash--has just sold her home in town about 30 min away and needed someplace to close quickly.
The house was smaller--more like entry level or downsizing--and lot of people who were looking were first time buyers--
Not lot of downpayment/no equity from another home...
I knew rising mortgage rates was likely one reason it was slow to move--was newer home and we bought when market in that area was very competitive and higher...
I know that reverse mortgages are not really that good for most people who consider doing them
Will having mortgage rates go up translate into higher rates for reverse mortgages??
We finally sold/closed house we bought about 4 yrs ago for my husband's older sister (mid 80s) to live in...
She paid us small amount to cover insurance and taxes and over time her health deteriorated
I was glad to sell but wish we would have broken even after realtor's fees--
The buyer was all cash--has just sold her home in town about 30 min away and needed someplace to close quickly.
The house was smaller--more like entry level or downsizing--and lot of people who were looking were first time buyers--
Not lot of downpayment/no equity from another home...
I knew rising mortgage rates was likely one reason it was slow to move--was newer home and we bought when market in that area was very competitive and higher...
you don't know if it was rising rates that made it slow to sell . people just may not be interested in it because they don't like it .
we have so many buyers here , yet the market is slowing down for lack of supply that people want . we have loads of homes for sale yet they sit unsold as they are not quality or attractive stuff
you don't know if it was rising rates that made it slow to sell . people just may not be interested in it because they don't like it .
we have so many buyers here , yet the market is slowing down for lack of supply that people want . we have loads of homes for sale yet they sit unsold as they are not quality or attractive stuff
Lol, let’s see what Redfin has to say;
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Redfin said although gains in the number of homes for sale may suggest more people are listing their homes, the biggest reason for the buildup of inventory is that fewer homes are being sold.-
So let me get this right Mathjak you are saying that even though there are more homes on the market then before, more homes to choose from, sales are slowing down because of the quality of those homes? So before there was less homes on the market but the quality was better and now that there are more homes to choose from the quality is poor.........hahahaha too funny
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