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Home prices will continue their glorious skyrocketing through the summer..............level-off significantly, then proceed upwards at a slower rate even with higher mortgage-rates.
Higher mortgage rates will at least blunt home prices as home prices were able to surge due to lower interest rates.
I wouldn't be surprised if monthly payments are still similar.
Quote:
Originally Posted by StillwaterTownie
Would you rather interest rates go negative as suggested by President Trump while he was still president.
Like Germany and Japan already had and we already have negative real yields since at least late 2008 if we are being honest.
To expand this back out, Trump was a hypocrite on QE. He bashed QE as a candidate for blowing economic bubbles. Then got into office and promptly demanded QE anytime we hit a snag.
With that said, Trump actually had net negative QE ever so slightly unwinding the bubble until the pandemic hit.
Yeah, prosperity sucks. Watch what happens if the do go up TOO high. STAGFLATION. Like your job? Unless you're in Government, watch out.
So your solution is keep rates low? Trying to avoid stagflation? Instead hyper inflation is possible. Much worse that stagflation which we appear to already be entering. First quarter is looking like zero growth.
Since the 2008 meltdown the feds have been massively over spending and keeping rates very low. Through Obama, Trump and now Biden. That was not sustainable nor good fiscal policy. But Obama, Trump and then Biden for a year were able to brag about the economy. And take credit for.
Eventually this was all going to hit the fan and now it has. The two biggest "tools" the federal government has had at its disposal are low rates and flooding the economy with cash. Neither of those work with out of control inflation. Its actually the opposite. However Biden wants to hand out more money which will just fuel inflation. We will have to really raise rates perhaps like never before.
I have mixed feelings about it all. I’m selling my house next month, so maybe it means I’ll get less. So for that reason I don’t want interest rates to rise. But it’s hard to say since houses are “flying off the shelves” so to speak. Maybe it will make almost no difference (it’s not like rates doubled). But I kind of want interest rates to go up so I can diversify my savings a little. The only way to not lose money to inflation with saving is the stock market but that’s not good short or medium term.
And like another poster said, they are going up but they are still pretty low. I was a kid in the 80s but I remember getting my dad to help me get a CD with 10% interest. Can you imagine earning 10% today vs 0.5%?
I own many properties, so I am constantly either taking on new loans or refinancing existing ones. Whatever happens with interest rates will not effect your sale much next month. It is too short a time period. It’s not like interest rates go up 1 point and everyone clutches their pearls and says “I’m out!”
Quite the opposite actually. They say, “Crap! We better buy now before they go up any higher.”
It takes a while for interest rate hikes to influence the market. Theoretically, if done slowly enough, they should have no effect at all. I don’t think that will be the case here, but I wouldn’t worry about an immediate crash in prices any time in the next few months either.
I own many properties, so I am constantly either taking on new loans or refinancing existing ones. Whatever happens with interest rates will not effect your sale much next month. It is too short a time period. It’s not like interest rates go up 1 point and everyone clutches their pearls and says “I’m out!”
Quite the opposite actually. They say, “Crap! We better buy now before they go up any higher.”
It takes a while for interest rate hikes to influence the market. Theoretically, if done slowly enough, they should have no effect at all. I don’t think that will be the case here, but I wouldn’t worry about an immediate crash in prices any time in the next few months either.
You are the one with experience, so I trust you on this.
I can’t wait to move and have this over with. Not only do I want the whole house prep and sale to be behind me, I really can’t wait to move back home. I’m a rural woman at heart and I hate living in the DC suburbs. I prefer the peace and quiet of the county side. And the nice thing, with the proceeds from my home sale, I can buy a nice little house for cash. I won’t have to worry about interest rates.
Would you rather interest rates go negative as suggested by President Trump while he was still president.
I think it is good mortgage rates go higher and higher. They should have been that way starting 9-10 years ago and never let up.
It was absurd they were so low and lower and lower while for sale home inventory was setting lower and lower record levels and prices were setting higher and higher records to this day.
It needs to happen as home prices have gotten so out of hand and it needs to stop.
And the strange thing is, Trump asking for negative interest rates is a horrible idea and really ticked me off as he berated Powell to do it 2 years ago as well as Super QE which has caused lots of this inflation now
And the strange thing about Trump is, there was an article about him wanting to go back to gold standard:
I was shocked to read that. Well maybe not as Trump is so volatile and cannot make up his mind. Though he was so afraid of not getting reelected that he would do anything to ensure it happened when economy was in danger of floundering do to shutdowns from pandemic.
You are the one with experience, so I trust you on this.
I can’t wait to move and have this over with. Not only do I want the whole house prep and sale to be behind me, I really can’t wait to move back home. I’m a rural woman at heart and I hate living in the DC suburbs. I prefer the peace and quiet of the county side. And the nice thing, with the proceeds from my home sale, I can buy a nice little house for cash. I won’t have to worry about interest rates.
Not a bad plan. I’m actually selling off a couple of properties now and holding cash from the sales for a couple of years so I can come in with cash in anticipation of higher interest rates and lower prices.
Inventory will take a while to build back up again.
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