« prev   random   next »


Rising Mortgage Rates To Make Houses Cheaper for those with Cash

By Patrick following x   2018 Mar 29, 11:40am 951 views   5 comments   watch   sfw   quote     share    


A sustained upswing in mortgage interest rates is likely to be felt by current and would-be homeowners alike, denting mortgage affordability in many large markets and complicating the financial decision on when or whether to move to a different home house. ...

But rates have also risen almost 50 basis points since the start of the year, and look to finally be at the beginning of a sustained upward trajectory that has been expected for the past several years. In seven large U.S. markets, including four of California’s largest markets[2] and Denver, Portland and Miami, mortgage payments already take up a larger share of income than they did historically. In San Jose, among the nation’s hottest and priciest markets, the share of income needed for mortgage payments increased from 36 percent historically to 46.1 percent at the end of 2017. Combined with record-high home prices, housing affordability is already suffering in these markets and will only worsen as rates climb.
1   HeadSet   ignore (1)   2018 Mar 29, 2:39pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Houses have always been cheaper for those with cash. A mortgage brings origination fees and points, which if "seller paid" are just added on to the house price.
2   Patrick   ignore (1)   2018 Mar 29, 2:51pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

You're right on all counts, but it's going to get even better for those who do not need to borrow.
3   APOCALYPSEFUCKisShostikovitch   ignore (35)   2018 Mar 29, 2:53pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

4   KgK one   ignore (0)   2018 Mar 29, 3:34pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Yes but if u put 300k in bank u also get 6k in interest at 2% apy. Loss on opportunity cost. So generally adds up about same.
5   JH   ignore (0)   2018 Mar 30, 8:13am   ↑ like (2)   ↓ dislike (0)   quote   flag        

Rising rates will normally cool the stock market since there will be other places to save. This will reduce the single-minded dive into real estate as the only place to save. In addition, rising rates will necessarily lower purchase prices to make them more affordable. Since the government artificially created this bubble starting in 2008 with extremely low rates, this is the best news for potential buyers in 10 years.

Zillow is just as single-minded as your realtor: to them, prices ALWAYS MUST go up
6   ChristianGuy   ignore (0)   2018 Mar 30, 10:41am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Yep they're really dishonest about the cause and effect.

The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

Kindle version available

about   best comments   contact   one year ago   suggestions