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Economy

nmmi

(248 posts)

6. No, its not good. Yeah, the aspect that private equity and corporate owners will have a tougher time is nice,

Reply to Fiendish Thingy (Reply #5)

Thu Jan 2, 2025, 03:35 PM

Jan 2

but unfortunately so will ordinary people trying to buy a house, or hoping to refinance.

Despite higher mortgage rates than a year ago, for example, house prices are higher, so the mortgage payment is higher. On top of higher property taxes and insurance rates.

https://ycharts.com/indicators/us_existing_home_median_sales_price
From Nov 30, 2023 to Nov 30, 2024 (latest data), the existing median home sales price is up from $387,800 to $406,100, an increase of 4.7%.

Private equity will manage just fine. Unfortunately, not the average person.

Homelessness rates have increased 33% in the last 2 years
https://www.democraticunderground.com/10143362703

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30Y Mortgage rate 6.91%, highest level since early July. AND NO, INTEREST RATES ARE NOT COMING DOWN [View all] nmmi Jan 2 OP

What do you mean interest rates aren't coming down? dem4decades Jan 2 #1

"Why won't interest rates go down?" - because ponies are very high maintenance items, a crushing economic burden nmmi Jan 2 #2

I guess it's only old fogies like me who remember Jrsygrl96 Jan 2 #3

My post didn't say that "like mortgage rates are higher than they've ever been" nmmi Jan 2 #4

Good! Fiendish Thingy Jan 2 #5

No, its not good. Yeah, the aspect that private equity and corporate owners will have a tougher time is nice, nmmi Jan 2 #6

If people can't qualify for mortgages at current prices, prices will have to come down Fiendish Thingy Jan 2 #7

Enough people are qualifying for mortgages to keep prices going up, and have been for years nmmi Jan 2 #8

It only took 8% of borrowers in arrears to trigger the housing collapse of 2008 Fiendish Thingy Jan 2 #9

I don't doubt that an economic collapse is quite possible, and it will solve the inflation problem too (for some time), nmmi Jan 2 #10

Collapse is bad; conditions, including high mortgage rates, that bring down prices- definitely good. Nt Fiendish Thingy Jan 2 #11

Only if they bring down mortgage payments, or temper the increase. Otherwise definitely bad if we have mortgage nmmi Jan 2 #12