Mortgage rates have seen a steep increase — more than doubling over the past two years. The rise has left homeowners eager to upgrade unable to afford a move, and locked into their current homes. NBC News’ Emilie Ikeda has more on the conundrum that’s leaving many Americans priced out.
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#NBCNews #Mortgage #Homeownership
Why are people still buying? Crazy world we’re in
Because they need a home. Duh
they aren’t they are in the “loan to own” group. Halfway between renting and owning.
buying a home with out the cash todo so only a fool would do that
But rich investors have that cash… they’re the only fools that can do it… yet they flip the homes to rentals and people will pay because they can fill up the rooms with renters who need a place and are struggling to find one where they want.
It’s a slave based system, what the fock do you expect? 😂
buy a sail boat
They’re the lucky ones… they own a home already.
Bingo
me2 and no MORTgage
Ungrateful 😂.. we have newlyweds still living with their parents to save save save …
@Bella D YOU DO?
you will never own the land you will never own the home all you are is a land tax payer you just bought the rights to be on the land lol the day you stop paying taxes they kick you off the land
This is all “blame the government” BS. Private investors bought up 25% of the market to flip to rentals. The interest rate hikes would be bearable if the market wasn’t being eaten alive by the greedy and well-off.
Not moving anywhere for the next 30 years😅! I locked in at 2.8%
@truthseekers your son also probably has virtually no living expenses. That’s not true for most peopl
@Seismic64 he has a mortgage and the same expenses anyone else has. He has to pay his bills, go on vacation, buy things just like you.
@Seismic64 Why wouldn’t my have the same expenses as anyone else? He doesn’t live with his parents, he’s not even in the same country as me, and he’s 45. So he musta learned something along the way.
@truthseekers I have less than 100k in my live savings.
@TheRighteousOne keep saving or build a small house
Everyone is underwater on their overpriced car loans as well when the prices were high.
Right, people have told me they pay $500-$700+ a month just for their cars/trucks. It’s insanity. No wonder people are going nuts.
The counter to high interest rates is supposed to be lower sale prices. Even a double digit rate is affordable if the home is only 2 or 3 times your annual income. So much for supply and demand.
Why need and I quote “need” 4 to 5 bedrooms???? Thats insane. You have a perfectly good home
Thats what im sayin
#firstworldproblems
A perfectly good home is a matter of perspective
They only have one child. They don’t need a bigger house.
@Xmx2772 they might one more and they could move in parents.
Dag.
As I watch from the side line thinking. How lucky they are to have a house. 😐. Right when I had just enough funds houses and interest both shot up. Now I got to save more but guess what. Rent a lot went up 😑. FML.
Think about buying small or building. I built a house for my neighbor for a little over $100K No bank needed to make her home.
Banks are under no legal obligation to help homeowners refinance. So when rates were at a record low, they should have limited the number of refinancing contracts in play. That way people would be forced to sell and buy a new home to achieve a lower rate, keeping the market moving
I’ve only ever bought one house. I didn’t ask any ripoff bank for a loan I paid cash.
why such a big home just do their kids can live in luxury and never move out
eyes bigger than belly
They are already homeowners in this economy and they just want upgrade.. want not need. FFS, 3 bedroom 1 bath house not cutting it for family of 3.
They are ridiculous
“4-5 bedrooms” is when I stopped caring about anything these people had to say and why I don’t feel sorry for so many people who bought way more house than they ever needed and now realize they don’t need all that space and can’t afford it. Americans are having less babies than ever yet everybody wants big homes? It’s all backwards.
Couldn’t agree more, once I heard the “4 or 5 bedrooms” bit I tuned out.
Its not so much that American HOMEOWNERS want bigger homes. It’s that DEVELOPERS, as well as mortgage bond investors, lenders, HOA industry lobbyists and taxing authorities want them, because bigger homes make those entities more money. The same needless deluxification for sake of profit phenomenon has happened with our vehicles. You can’t buy practical anymore because apparently the person selling doesn’t make enough money that way.
@Di Figgs There’s a difference between want and need. Those who want more than they need are the ones who end up homeless.
Totally agree. This is NOT an issue of “being priced out.” This is an issue of people CHOOSING to live beyond their means and want MORE than they can afford. Then they cry and whine when they get a foreclosure notice. Pathetic.
@Nate H Did you hear how little they pay?
IF they had a clue they’d double pay, twice a month instead of once. Pay off the debt. OWN the house out-right.
THEN you can realize a profit.
If you dance with the devil (banks) you lose.
They should sell it WHEN it’s paid off and pay CASH for their next home, and SAVE the usual “house payment” for the next “upgrade”.
When we upgraded with family growth we added on rooms.
I have the same interest & the same mixed feelings.
Thankful for my home. I ain’t going nowhere 🤘🏿
Buying a house has sucked since 2019 and it’s only gotten worse. What’s normal about home prices increasing by 40% over 48 months?
☝️
It’s residual from 2008, yet most people see it as another 2008, which it’s not. After the 2008 financial crisis, politicians created new strict lending regulations, and that stymied new building. Now we are 5m houses short, as we have the largest generation in their prime home buying years. The 2020 corona virus thing just exposed how fragile our infrastructure is, and that exposed the housing shortage that was happening anyway.
So, it was a regulation that was many responsible for the housing shortage; which resulted in high demand, which equates to higher prices. The. You add inflation, interest rate hikes, and supply chain issues, and you have the perfect storm. Until the United States builds home that meet demand, home prices will not decrease. They probably will not decrease anyway, as it takes years to catch up on that many houses, plus staying up with normal demand, so you will need to wait until salaries catch up, just as folks did in the 1980s.
@Jesse Thanks. I think that’s the best explanation I may have received. Many blessing to you 🙏🏼
@Jesse statically others prove otherwise. Death and birthrate. Ee don’t have a housing shortage. We do have a ZIRP, MBS, and regulation problem.
What is this story that has been run re-run, re-re-run, it’s like there is no news nowadays
“I want 4-5 bedrooms with a finished basement”
And I want 12-15 bedrooms and with a Pacific ocean view”……… but Im pretty thats not gonna happen cuz I cant afford it!!! Live within your means people!!! Geeeees!
3 bedrooms it plenty, kids can share rooms.
Get rental property
We call it as renewed investments on backchain of right resources’ exploration. As the Asset resale needs to find its place out of Asset Bubbles. This would give right impetus for reindustrialization and restructuring of American Economy. The Industry would spread across all of States more or less from Coast to Coast because of availability of Human Capital.
They already have a home what about the millions of first time homebuyers who can’t earn equity and can’t start their life they have a baby I can’t do that in an apartment
oh relly? So all those people living with kids in apartments aren’t living? huh?
Live within your means. Add a room, like we did.
They need to stay and save.
When my parents bought our home we stayed there from when I was in 1st grade through the middle of my Senior year when I moved out. My mom lived there until she died there, in my old bedroom. When we moved into that house it was a 3 bed one bath. We added 2 bedrooms and a bath as our family grew. We didn’t move to a bigger house, we were settled, we had history in that house. friends in schools/church.
The problem today is how people see a house as an investment not as a HOME. So they are constantly trying to keep up with the Jones’s on TV. All those giant 2 story wannabe McMansions built butt to butt in a culdsac of look alike boxes with no fenced yards or privacy. All because of Home Improvement and Extreme Home Makeover shows.
I bought my first home in my 40’s, for cash. I’m nevermoving at almost 70 I” be in the same house, in Hawaii until I die here. I’d NEVER move.
Unless the lava comes, and I have a spare house on wheels I built in the garage just in case. It could be because we had 8 kids and built onto our house as a kid I learn all my building skills BEFORE I was in HS. Woodshop in Jr.HS was remedial.
Moral of the story? Live within your means, SAVE, don’t loan to own. Save, don’t borrow. Borrowing is a suckers game, loan sharks work in banks too.
USURY % is a jewish invention to hold back the Goy.
I use no credit, I have no debt, no mortage, no bills.
So I speak from experience. Think about building a house. I built my first one when I was 19, by myself.
why need a 4br? and buy when u cannot afford. I dunno why americans have this kind of big house mentality? they got lucky having that low rate,
americans like BIG, big house, big car, big phone…
It’s not just mortgage rates….the selling prices of houses are insane. I’m not sure why people are paying 50-100k over what the house is actually worth. Seems like a dumb move, you’ll never recoup that money. I am a first time home-buyer and I’ve had to stay with my parents because that is happening to every house in my area, it’s insane. I see 1100 sq ft ranch homes go for close to 300k.
@ddellwo but if you’re overpaying that much for a house, you’re gonna be drowning in a mortgage and overpaying for a small house.
@TheRighteousOne – Buyer’s problem – not the seller’s problem…….😐
I’m looking at 250 square foot studios that are over $300K.
@TheRighteousOne7 bedroom 3 bath, full 2 car garage, and will refinance one the rates drop.
@louis hillWhy didn’t you refinance when rates were sub 3%?
They are keeping up with the Joneses. I really don’t see it necessary for them to upgrade. They have a home at a good rate.
People keep blaming higher mortgage rates but they could also LOWER the asking price for homes as well.
People who blame higher mortgage rates are buyers, but people who could lower the asking price are sellers. Different groups of people.
BS! 3% requires $4.22 per thousand on a 30 year fixed rate. The problem isn’t a 3% increase in mortgage rates it is the artificial inflated value, that’s a dream come true for builders, landlords and Realtors, all basing their earnings from the market values. Purchases by corporate buyers have also inflated values, raising rents increases the value of a home as an investment. There lies the problem. Solution; stop paying inflated values, if you must have more room, consider an addition with a home equity loan or refinance a much smaller principle amount.
A higher Mortgage Rate is OK but Higher prices dollars 200 more than 3 years ago are the key problem because with a higher rate, I can refinance later
Welcome to the liberal world. Remember to thank a Democrat for screwing the American people. Biden administration is absolutely are criminal s
we need to send more money to ukraine
You want all that space, but you don’t need it.
Been wanting to refinance my house for a lower mortgage than what i pay which is close to $1400 but until these interest rates lower ill stick with my $1400 a month 😂
If you didn’t refinance when rates were sub 3%, don’t plan on seeing those rates again in your lifetime!
When current home owners start losing their jobs. You can no longer make your mortgage payment no matter what interest-rate you purchase it at. Everyone also has two automobile payments at $1500 a month each plus insurance. higher electric bill payments. Higher fuel costs for your two automobiles. Higher groceries for all of your family. Reality comes quickly from all directions.
Not everyone. About 20% of us are financially literate, and we don’t do debt, unless we are leveraging it to make money. Car payments? Hahahahaah, those are for people that wish to be broke!
As a homeowner we have too many options not to fail. There’s loan modification to 40 years, forbearance, rent it out or house hack or last resort is to sell. Most homeowners have less than 4% rate with over 100k+ in equity.
The reality for 95% of home owners today in the United States is, your up to eyeballs in debt. Your cash reserves are zero. You have 5 credit cards with 20k on each paying the minimum payment. The Federal Reserve Board and the elite know how to manipulate your spending behavior, because your weak minded.
This whole situation is creating a major wealth disparity in the US. American dream is dead. Fed kept on buying the mortgage securities though it was not required. Builders kept on maintaining the inventory low. Banks and lenders provided free money at a fixed low interest rate for 30 years. All the home owners are happy with their mortgage rates and are not Willing to sell their homes. Who is responsible for this situation? You can’t blame the builders because they do business for profits, you can’t blame the home owners because they just used the opportunity provided to them. Banks are some what to blame, in this country, they do operate for profits but they do have responsibility for the public and strengthen the country, they are lets say 25% responsible. The major culprit was fed who kept on buying the mortgage backed securities though not needed. Fed was so irresponsible. Government was and is as usual useless, blind, and sleepy. Absolutely no one to save the new buyers and no one to resolve this problem. This problem was unnecessarily created by the fed, lenders, and home builders.
So you think that rates under 3% were bad for anyone? Wow, your ignorance is amazing!
This means either prices are going to continue their downward trends MORE intensely, or there’s going to be hundred of thousands unemployed realtors. Many with college loan repayments starting back up in October. Deal with it.
Where are housing prices decreasing?
There’s no downward trend dummy
Don’t do it. Be frugal
But we need to keep printing money to accommodate all the leaches that want handouts
With all due respect, if this couple couldn’t afford the house they have with a higher interest rate, than moving up to a much larger property is “pie in the sky” at best! These folks should be HAPPY higher interest rates are here as it appears to be keeping them from doing something stupid! Sometimes it’s better to be lucky than good…….😂
Wait. Want bigger nicer house. But can’t afford extra $500 per month ? Don’t think they could afford that home with their current mortgage rate.
4-5 bedrooms for 3 people? American greed thats all. Can’t have pity for those type of people. Also, there seems to be no shortage of homes in Texas. Perfect for first time home buyers. Only thing is, the interest rates, so then you’re back where you started.
What high interest rate, I bought my first home in 1990 at 8.5% and that was considered low
People want to much 😅
👍👍👍
Kid looking at $400K houses… fml
Headline: “Homeowners can’t afford to move with higher mortgage rates”.
Oh bulls–t NBC. The mortgage rates we have right now are on par with the ones that we had in the 1990s and are still better than the ones from the 1980’s.
What’s changed is that our real estate market back then didn’t look like the late stages of a Monopoly game. Force some of these corporate behemoth landlords to unload some of their single family homes, and give incentives for developers to start building tracts of PRACTICAL starter homes instead of these 3000 sq ft monstrosities, and mandate that only owner occupants can own them for the first decade they exist.
Rates need to stay at least 7% for at least 5 years or more. Only then will home prices really start to go down to balance out the high rates.
Ok so they wanna buy a bigger house with more bedrooms then family members I’ll be looking for the follow up story how there house poor and will blame everyone but themselves 🤦🏻♂️
Its not rates its the selling price thats stopping people from buying.
thanks biden
Why they need 5 bedroom and a basement? 😂 I don’t get it
At least they have a house. There are families with more kids than them living in apartments. But they want 4 to 5 bedrooms with a finished basement? Lol okay.
It’s not the rate. It’s the cost of the home. Home prices are way to much. Bigger home, ha! We all what we can’t have.
Wait.. I saw 1 toddler. Where is the family for the 4-5 bedroom? Don’t tell me this is Americanism.. we are a sad case. Let me start the video over, must have missed something. Brb.
Greed at on all levels of society. Unsatisfied homeowners selling for unnecessary reasons is the reason for the shortage. Nevermind that they are buying a lesser quality, overpriced home at that.! Foolish.