Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Stimulus, 1-3, was one of many factors contributing to inflation.
The latest pandemic- related QE, which began in March, 2020, effectively bought down interest rates and did so to stimulate the economy. Nearly everyone that could, refinanced to a 30 year fixed rate mortgage, 3%, +/- and are far more likely to stay put for the long term, meaning inventory of homes for sale will remain tight in many markets.
Lenders learned from the Great Recession and seek to avoid foreclosures. When and where feasible, they will back load missed payments.
Most major builders went out of business in the Grear Recession and new construction has not recovered.
I don’t see anything that suggests housing, purchase or rental, will become more affordable, in the foreseeable future.
Stimulus, 1-3, was one of many factors contributing to inflation.
The latest pandemic- related QE, which began in March, 2020, effectively bought down interest rates and did so to stimulate the economy. Nearly everyone that could, refinanced to a 30 year fixed rate mortgage, 3%, +/- and are far more likely to stay put for the long term, meaning inventory of homes for sale will remain tight in many markets.
Lenders learned from the Great Recession and seek to avoid foreclosures. When and where feasible, they will back load missed payments.
Most major builders went out of business in the Grear Recession and new construction has not recovered.
I don’t see anything that suggests housing, purchase or rental, will become more affordable, in the foreseeable future.
Signs are out there that the perfect storm of competition for houses has reached its peak.
The bidding wars that are responsible for record price increases depend on buyers continuing to make more money than it cost them to live.
This is changing as more and more people are living paycheck to paycheck and driving up their credit card balances.
Whether its caused by an increase in the fed funds rate or uncontrolled inflation, a recession will take place very soon and has probably already started.
Nearly everyone that could, refinanced to a 30 year fixed rate mortgage, 3%, +/- and are far more likely to stay put for the long term, meaning inventory of homes for sale will remain tight in many markets.
.
Oh god you'ev got that right.
My friends and I joke we are all STUCK in our homes (even though the pending doom is not a laughing matter). Which is fine for us because we love our house and have made a fortune off of it in just 5 years.
I would NEVER even consider selling or moving right now, since mortgages have doubled. And it's not just me. Houses are still selling like crazy here but probably not for much longer. It won't stop but slow down. My house is pretty much recession proof, the location. It realllllly sucks right now for people who don't own homes, because rents are skyrocketing.
We refinanced in 2020 and got our payment down to a stupid amount (for how nice our house is). I'm sure loan officers are panicking right now.
My friends and I joke we are all STUCK in our homes (even though the pending doom is not a laughing matter). Which is fine for us because we love our house and have made a fortune off of it in just 5 years.
I would NEVER even consider selling or moving right now, since mortgages have doubled. And it's not just me. Houses are still selling like crazy here but probably not for much longer. It won't stop but slow down. My house is pretty much recession proof, the location. It realllllly sucks right now for people who don't own homes, because rents are skyrocketing.
We refinanced in 2020 and got our payment down to a stupid amount (for how nice our house is). I'm sure loan officers are panicking right now.
Mortgage lending has always been a cyclical business, feast of famine.
It’s all about ARMs, right now.
The typical mortgage before the Great Depression required 50% down and a 5 year fixed rate term. Upon maturity, the owner either paid off the note or refinanced at the current rate. In other words, the owner incurred the long term interest rate risk.
Whether its caused by an increase in the fed funds rate or uncontrolled inflation, a recession will take place very soon and has probably already started.
We had a brief recession in 2020. QE and the great giveaway, known as PPP, Stimulus payments and Unemployment toppers were tools used to keep things afloat. No sooner than the first Stimulus Payments were made, FRB called for another round. The closer we got to the 2020 Election, the more desperate Trump got for Stimulus #2. His party would not play ball, even with a clean bill. Had there been another Stimulus before the 2020 Election, it may have tipped the vote in favor of Trump. It would not have hurt him.
All this $ created demand far in excess of the supply chains ability to produce.
The Covid QE ended. PPP, Stimulus and Unemployment toppers are history.
And here we are.
FRB acknowledges it got it wrong and should have acted sooner in terms of rates. Having said this, monetary policy alone cannot fix this.
It’s going to take a few years. Buckle up, buttercup.
We had a brief recession in 2020. QE and the great giveaway, known as PPP, Stimulus payments and Unemployment toppers were tools used to keep things afloat. No sooner than the first Stimulus Payments were made, FRB called for another round. The closer we got to the 2020 Election, the more desperate Trump got for Stimulus #2. His party would not play ball, even with a clean bill. Had there been another Stimulus before the 2020 Election, it may have tipped the vote in favor of Trump. It would not have hurt him.
All this $ created demand far in excess of the supply chains ability to produce.
The Covid QE ended. PPP, Stimulus and Unemployment toppers are history.
And here we are.
FRB acknowledges it got it wrong and should have acted sooner in terms of rates. Having said this, monetary policy alone cannot fix this.
It’s going to take a few years. Buckle up, buttercup.
That's fine.
I'll take the 8-10% annual loss to stay in cash until the we hit bottom.
It realllllly sucks right now for people who don't own homes, because rents are skyrocketing.
Then you move.
You seem to think that every renter is only a renter out of need and not want. And if that was the case, there would be no such thing as expensive luxury rentals.
The only time I saw a rent increase was when I was in an apartment owned by a corporation, otherwise most landlords would rather keep a good reliable long term tenant than make a few hundred dollars in profit every month from a new tenant.
If one’s mortgage isn’t fixed rate, you’re still at the mercy of interest rate hikes.
Then you move. You seem to think that every renter is only a renter out of need and not want. And if that was the case, there would be no such thing as expensive luxury rentals.
Most are. Why would anyone want to throw money away renting, because that's exactly what renting is? Can't afford a house/real estate because you live in an outrageous COL area? Yeah, move like you said.
Quote:
Originally Posted by Rocko20
The only time I saw a rent increase was when I was in an apartment owned by a corporation, otherwise most landlords would rather keep a good reliable long term tenant than make a few hundred dollars in profit every month from a new tenant.
That's a hot one. Landlords (especially corporations) are greedy pieces of ****. You think any landlord gives a **** about you? They just want that check on time. They didn't rent to you for charity, it's a business. Sounds like you've rented from people all their life, most renters use apartments i.e. corporations and they are just scum of the earth. I'm going to rent this current house out eventually, I would absolutely giver someone a 90 day notice for another (screened/background checked) person to give me hundreds more per month. If you've gotten out of all that, good for you. Inflation is sky high rents have jumped and continue to, I have my laughably low house payment locked in for the next 25 years that's peanuts. And our house is nice, solid established upper middle class neighborhood.
Quote:
Originally Posted by Rocko20
If one’s mortgage isn’t fixed rate, you’re still at the mercy of interest rate hikes.
Welllp except mine is locked in in the low 3%s; we never had an intention of an ARM and I know zero friends with one. ARM didn't even cross our mind.
Sounds to me like you're just bitter you don't own a home and are a renter. We've made a 100% return in five years. A home is the easiest way to build wealth. You get rich just eating and breathing and sleeping in the home you pay for.
06-21-2022, 03:01 PM
4,640 posts, read 13,949,956 times
Reputation: 4052
Serious grave morbid situation for Billions worldwide. Even just unbearable. I am so endlessly happy to not have to pay any monthly rent for my hometown of New York City. Otherwise, forget about any International Travel for the most part. Any chance or prospects of that winded up getting almost completely erased. And USA is actually one of the best countries for high enough wages/low enough cost. Have to just avoid paying the rent in some San Francisco's. Like South Korea, Taiwan, Austria, UAE, Qatar, Kuwait, Oman, Bahrain, Turkey, Germany, Poland, Hungary, Singapore, Ireland, Czech Republic, Australia, New Zealand. Ugh, just make the costs of 1 to 2 bedroom units especially much lower cost for each month. Problem solved!
Also, price of airplane tickets, Hotel room accommodation, ultimate range of Commodities/basic essentials, public transportation have to readjust in universally correct costs.
Now, scary inflation occurs in Azerbaijan for the outside menu prices, India, even Thailand, Laos, Cambodia, Vietnam, Lebanon, Morocco, Pakistan, Indonesia, Myranmar, Nigeria, Uzbekistan/Kyrgyzstan/Tajikistan. Most people in the USA don't have reason to complain compared to the citizens of those republics!
Without any other option but to just remain highly stoic. People of India are extremely successful in this exceptional calm form of composure. Crime is low. Don't really see anyone losing it right in front of public view, at least. And there is middle class income over there for 100 Million+.
You seem to think that every renter is only a renter out of need and not want. And if that was the case, there would be no such thing as expensive luxury rentals.
You are 100% correct. Many people choose to rent for any number of reasons. Now buying an apartment is hard to understand.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
