#Housing #Homebuyers
Yahoo Finance’s Janna Herron joins the Live show to discuss U.S. mortgage rates hitting a new high since January 2020, the benefits of refinancing, and the outlook for the housing market amid high inflation.
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Leave it alone!!!!!
Lol, you want to push a wheelbarrow of money around to buy food?
@Andy Christ no my visa is just fine.
@Andy Christ why change anything and make people go bankrupt everything is fine how it is!! Government did this now leave it alone even 3-5% rates will kill everyone then banks will have all these houses and won’t want it remember banks don’t give a crap about your house
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.
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
@shahbaz yusuf 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.
x2 them. We need to time to catch up
Let the inflation come! I sit on a 15 year mortgage loan with a fixed 1.75 % interest rate. The more inflation, the better.
You must not have any money in the bank.
Inflation is great for asset owners, sucks for others sitting on cash looking to buy
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…
@Denny Atkins – 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.
@Jono bs
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 🙃
Your dad’s house purchase price was 10x lower and his salary to home ratio was also significantly better. Let’s wake up.
@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…
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
Homes are for living in not for speculating. In the past two pandemic years home prices increased because investment companies like BlackRock bought up home inventory creating an artificial supply shortage, artificially inflating home prices.
This is not the result of individual home buyer activity.
This market manipulation has put homes out of reach for working class Americans.
This is a bubble that will burst when the fed unwinds QE and MBS purchases.
If nobody owned properties to rent out, then there would be even fewer homes built and nobody would be able to move out of their parents house until they were ready to buy a house.
Don’t tell my wallet that.Sold my home with $400K in equity last September.
@Jan Bruun Andersen But isn’t what they doing Communism? They are trying to control the housing market. Creating a Monopoly. Or is it an Oligarchy?
@Maximum Payne – who are “they”?
Fake news. Home prices have gone up because of low supply, high demand coupled with ridiculously low interest rates.
It means home prices will be going down.
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.
@Jonathan 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…
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.
I think the Feds are trying to do the same this time
This won’t happen. Because of the level of debt now it would bankrupt the whole world
@meat ball 3000 the percentage of debt service as a percentage of GDP is near lows.
@Corkfish1 what country are you in as it’s at all time highes in the states and australia
@meat ball 3000 US
Double knife stab right there. High housing cost + high interest rate mortgage.
Why show the rates with purchased points? Misleading
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.
Why would they want to foreclosure and just throw away their 20% down??? When they can just rent it out.
@Leo Sotelo That is assuming it’s their second house. How about if they bought for 1 million but the price down 25%-30%.
@Andi S 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.
@Leo Sotelo people don’t want to foreclose. They never do. But it happens all the time.
Trees dont grow to the sky
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
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
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.
prices were not this high when interest rates were high.
End the FED
Honestly! they “try” to fix problems but they really only cause them
4% is still high given house prices are drastically higher
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real estate or the stock market which is the best investment?
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At this point ? Neither one . Precious Metals are about the only hedge against the financial disaster that’s coming .
Now you can buy real estate on the stock market.
In reality, primary home. lock in a good one and stay put. Keep it maintained and pay it off well before retirement.
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.
One of the worst times to buy a house I’ve ever seen.
It’s going to get a lot worse .
Invest in virtual real estate. Period.
Lmao
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.
Double digit rates mean super cheap real estate. So little risk in the market. These rates today shouldn’t be compared to the 80s.
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.
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 .
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
The bad news is for people who bought in the last year. You are about to be underwater for a long time.
My parents saved up for two years and bought their move in ready house in a safe neighborhood for $40,000 cash in 1994.