4% is still high given house prices are drastically higher

I was around in the 1970s when rates hit 16%. It's what needed to happen to wring that 20% inflation out of the economy.

@peterdangelo5882

2 жыл бұрын

Problem is paying interest on 30 Trillion which is our national debt is a nose bleed. As short term interest rates raise so does the money our government has to spend to service the interest on said debt. When the gov went after inflation in the 80s the debt was under 1 trillion. Please do not fool yourself, this country is in real trouble.

@williamg4524

2 жыл бұрын

@@peterdangelo5882 tell the idiots to stop spending

@Corkfish1

2 жыл бұрын

@@peterdangelo5882 keep in mind some of that debt is long term. The payments on it will not increase as rates go up. Also, debt service as a percentage of GDP is at very low levels.

@J.NX10realestateinvestor

2 жыл бұрын

I think the Feds are trying to do the same this time

@firstname2072

2 жыл бұрын

This won’t happen. Because of the level of debt now it would bankrupt the whole world

My parents saved up for two years and bought their move in ready house in a safe neighborhood for $40,000 cash in 1994.

One of the worst times to buy a house I've ever seen.

@dbrew2u

2 жыл бұрын

It's going to get a lot worse .

the secret is too have money ready, becouse the only weapon too fight inflation is raising rates and when they will reach alot higher, not 1000 of 1000 will be granted a loan but rather 100 of 1000 people, and that will lower the prices alot - this is common sence so people SAVE, SAVE and SAVE becouse the rates will get lower again and houseprices will skyrock, but that will maybe be in 5-7.years from now

I thought a "fixed rate" mortgage meant your interest rate will stay at whatever % you bought it at throughout the entire 30 year?

real estate or the stock market which is the best investment?

@viviangall1786

2 жыл бұрын

@chris-pj7rk

2 жыл бұрын

stock and its like is becoming really lucrative, but its not lucrative for some people making rookie mistakes and loosing money lol .

@fredgallag6097

2 жыл бұрын

I venture in the broad markets but not by myself tho. i follow the trades of "Katherine Rae Lobe' . She is a popular coach you might have heard of. I can correctly say she's worth her salt as a FA as her diversification skils are top notch/ I say because i see that in her results as my portfolio grows by averages of 10 to 15% on a monthly basis,

@jamescomb1170

2 жыл бұрын

@@fredgallag6097 please how do i get in touch with her

@fredgallag6097

2 жыл бұрын

@@jamescomb1170 look her up on the internet and leave her a message she's quite popular for her service she was recently featured on Bloomberg business news.

Means inflation and homeownership is nearing inaffordable for majority seeking to buy and renters now must earn 8k -10k in income a month to qualifying get ready for mass influx in homeless population incomes doest not match up to cost of living. Sadly seniors aren't even making it. American dream has turned to crisis for many.

@shahbazyusuf1190

2 жыл бұрын

It’s good rates go up house prices will fall they’ll crash and come back to normal house prices are absolutely insanely over priced double what they should be

@maximumpayne575

2 жыл бұрын

@@shahbazyusuf1190 I doubt it will happen. Inventory is too low. The people selling the homes have to still pay high prices on the next property they will buy.

4% is NOT that bad ?? She comparing totally different thing. 4% of peak price is really bad, price will go down hard since no buyer can afford it anymore. Once the price start to go down, the person who bought at the peak wondering why I've to keep paying mortgage for house which has less value than my mortgage then they start to foreclosure, and you know the rest.

@leosotelo5119

2 жыл бұрын

Why would they want to foreclosure and just throw away their 20% down??? When they can just rent it out.

@andis9076

2 жыл бұрын

@@leosotelo5119 That is assuming it's their second house. How about if they bought for 1 million but the price down 25%-30%.

@leosotelo5119

2 жыл бұрын

@@andis9076 with more investors, more people wanting to buy more rentals than before, home will come down in prices, but will come back fast again, with people trying to get in and scooping them up. Airbnb changed this housing market. It’s not the same as before.

@NicholasWHaley7

2 жыл бұрын

@@leosotelo5119 people don’t want to foreclose. They never do. But it happens all the time.

In certain area's of the country such as Florida & Texas Rising Rates at this point mean little to nothing . When Interest Rates become Equal to the Inflation Rate ? Then the Record Home Price increases may begin to slow . But , they will still not be affordable for most first time buyers .

Double digit rates mean super cheap real estate. So little risk in the market. These rates today shouldn't be compared to the 80s.

Without the book cooking they do for CPI we're at like 16%+ inflation. Rates need to be at 12%+ at a minimum by the end of the year or the dollar fails.

Double knife stab right there. High housing cost + high interest rate mortgage.

I’m hoping that I can finish the NACA program soon and lock in a below market interest rate. 4% rates mixed with increasing home prices are scary to think about a as a first time homebuyer.

@larryburks6668

2 жыл бұрын

Did you finish? NACA is hell with all that paperwork. With that being said, we locked in to 0.375% when we moved to Georgia from California.

@PrissyKrissy15

2 жыл бұрын

@@larryburks6668 Wow, that’s amazing!! Yes, I’m finally NACA qualified and currently under contract for a home! 🙌🏾 fingers crossed it continues to go as planned..lol

@larryburks6668

2 жыл бұрын

Where are you buying, if you don't mind my asking? I won't go through NACA again. Too much paperwork. But it was different because we had ZERO debt and cash on hand and it still took a few months smh. I pray that all goes according to God's plan and you get locked into a fantastic rate. The lowest is 0.015.

@PrissyKrissy15

2 жыл бұрын

@@larryburks6668 I really appreciate the well wishes! I’m in the DMV area. It took me a year to be qualified and a month to find this home so yes it definitely took a bit to be ready. I don’t think my rate is locked yet (?) but it’s looking like 3.75%. Definitely not the 1.8 it was last year but I’m grateful that I could find something in this market! lol.

@larryburks6668

2 жыл бұрын

Ok cool. Most folks that use NACA aren't aware of what I believe is called the HOPA GRANT, or something like that. Anyways, we qualified. It's income based. Such a BLESSING. Moving from California to Georgia I took a pay cut. With the household size and reduction in income, for every dollar I contributed towards buying down points, anything over 10k contributed they match dollar for dollar. So basically, we bought down the interest rate from 3.62 to 0.375. that cost 20k. They matched us dollar for dollar 10k. Basically, that reduced 10 off the sale price. The owner got his asking of 170k but we only paid 160 due to the reduction. So we walked into instant 10k equity.

Trees dont grow to the sky

I’ll be damned to buy a house at 4.5 %

End the FED

@daytonmiller-investingenth7675

2 жыл бұрын

Honestly! they "try" to fix problems but they really only cause them

It means nothing - rates have been much much higher before - this is nothing.People still bought houses all over the place this is just paranoia

@NicholasWHaley7

2 жыл бұрын

Lol paranoia? We have the most expensive housing adjusted for inflation ever. People already couldn’t afford the prices and now you’re tacking up interest? It needs to happen but there will consequences.

@ryanwalthuis1928

2 жыл бұрын

prices were not this high when interest rates were high.

There are still buyers in huge numbers paying with cash. Only reason to purchase now is to lock in a good rate rather than buying with cash on top of the market. Buy high sell low good luck

20% to slow down

x2 them. We need to time to catch up

Housing market crash is not coming

@GrandChessboard

2 жыл бұрын

Yes it will. Once the Fed takes off the MBSs it has been added to the balance sheet since 2008 and the raising of interest rates will not help...

@michaelc1063

2 жыл бұрын

Not in our lifetime

@Corkfish1

2 жыл бұрын

I remember people saying that in 2007.

The bad news is for people who bought in the last year. You are about to be underwater for a long time.

Let the inflation come! I sit on a 15 year mortgage loan with a fixed 1.75 % interest rate. The more inflation, the better.

@jonathan6665

2 жыл бұрын

I sit on a 30 year fixed 0.5% interest rate. One of the best loans in history 🥂

@dennyatkins3842

2 жыл бұрын

You must not have any money in the bank.

@Jonathan-gk6se

2 жыл бұрын

Inflation is great for asset owners, sucks for others sitting on cash looking to buy

@GrandChessboard

2 жыл бұрын

The only reason your home is valued so high is because the only one buying MBSs now is the FED. And soon they are going to stop buying them and raise interest rates. Your home's value will drop like a rock... But a dollar will buy a lot more after that, lol...

@JanBruunAndersen

2 жыл бұрын

@@dennyatkins3842 - true, or at least not a fortune in cash. Nearly all my free cash is in the stock market and in crypto. And boy have it been a couple of good years.

End the fed

My dad got a 18% on his home in the 80s So it all a good deal for any one suck it up and get to work 🙃

@Tunafishyme

2 жыл бұрын

Your dad’s house purchase price was 10x lower and his salary to home ratio was also significantly better. Let’s wake up.

@GrandChessboard

2 жыл бұрын

@@Tunafishyme Lol, someone with a brain around here. If minimum wage was adjusted to real inflation, it would be 21 dollars an hour now. Maybe we can also have the FED stop buying MBSs and see what a home goes for in reality...

@ashleymariekim3495

2 жыл бұрын

You have no idea what you are talking about trying to compare the housing market in the 80s to now. Your dads house was prob 10x cheaper than homes now and wages are not keeping up

She talks about the monthly mortgage payment is over $300 more now than some time ago without telling us what the mortgage debt is and the time term of the loan. Why waste out time interviewing another idiot can't understand the simple math of compound interest, principal, and time value of money. She has no idea what it was like when the rates were around 12.5%. She is just creating hysteria for the folks seriously taking the first step in the most important long term investment sof their lives.

Invest in virtual real estate. Period.

@NicholasWHaley7

2 жыл бұрын

Lmao

It means home prices will be going down.

@Jonathan-gk6se

2 жыл бұрын

No it doesn't, in fact over the last 60 years when mortgage rates have risen, usually the median house price has risen as well.

@GrandChessboard

2 жыл бұрын

@@Jonathan-gk6se No, when the FED stops buying MBSs and no bank on the planet will buy them you will see that home prices today are only an illusion and we never recovered from 2008...

4% not that bad lol? Referring to the 1980's when housing prices were 10x cheaper? Yeah that comparison is uneducated lazy.