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Old 09-21-2023, 08:08 AM
 
1,540 posts, read 1,125,554 times
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Quote:
Originally Posted by BostonMike7 View Post
Guess I''m not moving anytime soon.
I tried to scrap together some stats and from google searching found that about 75% of homes are owned outright or have a mortgage of less than 5%.

The only people selling are those that absolutely have to or are downsizing. It always cost more to upgrade from the starter house house but now that hurdle has skyrocketed.
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Old 09-21-2023, 08:25 AM
 
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Quote:
Originally Posted by simplexsimon View Post
Expect mortgage rates to go up with the Fed saying yesterday that it plans to keep short term rates higher for longer.

Wells Fargo's rate sheet shows that jumbos are back in favor. It's also the first time I've seen an ARM with an adjustable period less than one year.

https://www.wellsfargo.com/mortgage/rates/
Very odd. Why are they doing this?
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Old 09-21-2023, 08:31 AM
 
Location: The ghetto
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Quote:
Originally Posted by msRB311 View Post
Very odd. Why are they doing this?
An attempt to curb inflation.
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Old 09-21-2023, 08:33 AM
 
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Quote:
Originally Posted by simplexsimon View Post
The only people selling are those that absolutely have to or are downsizing. It always cost more to upgrade from the starter house house but now that hurdle has skyrocketed.
I agree. I would have to imagine there are a good number of folks out there with low interest rates, just watching inflation eat up their mortgage principle.

You'd have to have a good reason to give that all up. I'd like a house upgrade for the sake of fulfilling some wants, but financially it doesn't make sense.
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Old 09-21-2023, 08:44 AM
 
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In my neighborhood a lot of people are selling. They are people who have been here for a while (a few decades), don't have young kids. I am guessing most are leaving the state...because there is nothing to downside to in MA really unless they move to a not so great town. I know one neighbor is moving to FL, two died, another moved to Denver, CO which i don't think is much cheaper than here, the others I don't know...but now seems like a good time to cash in if you are moving somewhere cheaper, and there's been a lot of turnover. My question is who the hell would want to buy right now? It seems like the people who have moved in are are very well off.
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Old 09-21-2023, 08:51 AM
 
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Quote:
Originally Posted by msRB311 View Post
Very odd. Why are they doing this?
Are you asking why jumbos are priced better than conforming loans? I don't know the exact reason but it's not an uncommon occurrence and just depends on market conditions and how a bank wants to manage its liquidity.

If asking about the Fed's decision, yes like the other poster said they deem the economy still too "hot" and inflation still a risk and the greater evil vs. unemployment.
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Old 09-21-2023, 08:52 AM
 
Location: The ghetto
17,737 posts, read 9,192,519 times
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Quote:
Originally Posted by msRB311 View Post
My question is who the hell would want to buy right now?
Do you think it will get better in the near future? The people who play that game almost always get screwed.

The best time to buy is when it's the right time for you.
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Old 09-21-2023, 08:53 AM
 
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One recent buyer i'm aware is an older couple with two college age daughters. Sold their paid-off home for ~$1.5mil in Lynnfield and downsized for $800K in a "lesser" town. Since their daughters graduated HS, the need for the good school system was no longer. Threw the difference in the bank as investments to pay off the college loans.
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Old 09-21-2023, 08:59 AM
 
16,400 posts, read 8,198,277 times
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Quote:
Originally Posted by redplum33 View Post
Do you think it will get better in the near future? The people who play that game almost always get screwed.

The best time to buy is when it's the right time for you.
For some it seems there is never going to be a right time...at least not in the Boston area.
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Old 09-21-2023, 09:01 AM
 
16,400 posts, read 8,198,277 times
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Quote:
Originally Posted by BostonMike7 View Post
One recent buyer i'm aware is an older couple with two college age daughters. Sold their paid-off home for ~$1.5mil in Lynnfield and downsized for $800K in a "lesser" town. Since their daughters graduated HS, the need for the good school system was no longer. Threw the difference in the bank as investments to pay off the college loans.
I guess that is reality today...I can't really get on board with an 800k home being something to downsize to...but i guess that's where we're at in MA.
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