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Economy

nmmi

(248 posts)

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

Reply to Fiendish Thingy (Reply #11)

Thu Jan 2, 2025, 05:15 PM

Jan 2

and other housing costs pushing inflation higher and affordability lower and increasing homelessness. Witness the 33% increase in homelessness in the last 2 years. Do we really want more of that?

Higher mortgage rates will slow housing price increases, may even bring them down, but that does NOT mean mortgage payments will also slow down or decrease. They probably won't.

The notion that raising mortgage rates will bring down mortgage payments is frankly fantasy.

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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