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Mortgage rates in the US topped 6% for the first time in nearly 14 years.
The average for a 30-year loan jumped to 6.02% from 5.89% last week, Freddie Mac said in a statement Thursday. The last time rates were above 6% was in November 2008, the company’s data show.
** Posted in "Politics" because any discussion of the current economy quickly turns political, which would violate TOS in the Real Estate forum
I guess the question is, will prices come down enough to help the average buyer? It's one thing if you have cash and are only concerned about price. But if you have to borrow prices have to drop quite a bit to make up for the interest. A $400k house at 3% costs about the same as a $280k house at 6%. Need a 30% price reduction just to break even.
I guess the question is, will prices come down enough to help the average buyer? It's one thing if you have cash and are only concerned about price. But if you have to borrow prices have to drop quite a bit to make up for the interest. A $400k house at 3% costs about the same as a $280k house at 6%. Need a 30% price reduction just to break even.
With the way the Fed is continuing to increase rates into data showing a significant decline in inflation and economic activity, it is looking like a 30% fall in home prices is entirely possible in a coming severe recession.
With the way the Fed is continuing to increase rates into data showing a significant decline in inflation and economic activity, it is looking like a 30% fall in home prices is entirely possible in a coming severe recession.
I guess the question is, will prices come down enough to help the average buyer? It's one thing if you have cash and are only concerned about price. But if you have to borrow prices have to drop quite a bit to make up for the interest. A $400k house at 3% costs about the same as a $280k house at 6%. Need a 30% price reduction just to break even.
Yeah, I certainly hope we don't see home values dropping 30% ...
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Quote:
Originally Posted by Ponderosa
With the way the Fed is continuing to increase rates into data showing a significant decline in inflation and economic activity, it is looking like a 30% fall in home prices is entirely possible in a coming severe recession.
Here we go again, the sky is falling...at least 30% of the sky.
Entirely possible? Or certain? What is entirely possible? Nice play on words for the drama.
I'm sure all the renters will jump on this thread in glee. Maybe not, rentals are ridiculously priced too.
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