Are we on the cusp of another real estate crash? (mortgage rates, fees)
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Between rising interest rates, stagnant wages, and now the Dodd Frank issue...housing will slowly implode again. If you are able to wait it out and buy with cash, you might get a great deal in a year or two.
You might get to pay more for that house in a year or two....
People who were caught in the 2008 crash are spooked that a 2017 bubble will lead to another crash. But it was caused by forces that are no longer present. Credit default swaps insured derivatives such as mortgage-backed securities. Hedge fund managers created a huge demand for these supposedly risk-free securities.
People who were caught in the 2008 crash are spooked that a 2017 bubble will lead to another crash. But it was caused by forces that are no longer present. Credit default swaps insured derivatives such as mortgage-backed securities. Hedge fund managers created a huge demand for these supposedly risk-free securities.
Promissory notes backed by mortgages are still sold by originating institutions before the borrower's ink is dry. The exact triggers for the 2007 and 2008 collapse may not exist but the economic background is still there.
The biggest determination of the likelihood of promissory notes backed by mortgages, and credit card debt, is the willingness and ability of the borrowers to pay. Traditionally lenders held the paper they generated so the lenders "knew their borrowers" and lent to worthy borrowers. Lender are still "flipping" their paper, so the lending officers don't actually care one way or another if the borrower has the moral fiber to pay their debts.
People who were caught in the 2008 crash are spooked that a 2017 bubble will lead to another crash. But it was caused by forces that are no longer present. Credit default swaps insured derivatives such as mortgage-backed securities. Hedge fund managers created a huge demand for these supposedly risk-free securities.
No. The mortgagees aren't even remotely close to finished with the houses in default from 10 years ago. Court dockets are choked with them; there's still no closure. Banks and servicers with active foreclosure cases that only await their motion for judgement are just stopping... leaving everyone in limbo. HAMP fraud for many of them will be discovered if the sale goes through and HUD wants to be paid back and so, they just STOP.
Between rising interest rates, stagnant wages, and now the Dodd Frank issue...housing will slowly implode again. If you are able to wait it out and buy with cash, you might get a great deal in a year or two.
Not a smart move for renters who are trying to buy a home, because areas with hot real estate markets generally have high rent, too. We’ve been saving for a home for 10 years... and have spent about $150,000 in rent during that time period. If wait another two years, in hopes of a crash that probably won’t happen, we’ll have spent an additional $43,000 in rent. Meanwhile, it’s not even Friday and we’ve already been outbid twice this week, and had two other homes get accepted offers in the time it took for our agent to get the lock box codes and drive across town to meet us.
So, that leaves two viable options:
1. Spend more than we planned to on something we like and is still in our price range, with the potential risk that the value might drop soon (doubtful)
2. Blow tens of thousands more on rent (inevitable)
At this point, I would like a huge crash in prices.
Why?
Because then this topic of Real Estate would be filled with large numbers of whiners complaining about it.
This topic has become quite boring since 2013.
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