With mortgage rates now topping 8%, buyers are continuing to be squeezed by the housing market and rising prices. Editor-in-Chief at Investopedia, Caleb Silver, explains new data showing how your dollar only goes half as far as it did at the end of 2020 when it comes to buying a home.
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#Mortgages #Housing #Interestrates
1st
Building Back Better lol.
Thank your local democrat
@Jaden Gregg wut
@Kavik526Town WHAT?
@Jaden Gregg wth you saying
I found the dude that flunked out of the 9th grade and gets spoon fed what to believe from republicans
trump’s tax cuts for the rich and stimulus checks he signed
Good thing our mortgage is fully paid 🙂
good thing I even have a mortgage at 3.5%. but I’m not going to gloat about it. It is truly awful out there and I feel bad for people
Why are all these real estate agents and mortgage providers such used car salesman. How does he know in 6 months rates will drop? Monthly mortgages have gone up by 40% in the past 2 years and he wants use to buy a home now. Shame on all of them.
Anything to drive sales will be said.
Because it’s a business.
My own sister in law who is a realtor was trying to sell my husband and I a house right now…. Super crooked….
They don’t. They are only saying this because the housing market is seasonal.
@Wango they are only saying this because they see the writing on the wall and they want to squeeze few more dollars out of people before their industry collapses. This is why the national Association of Realtors and countless agents are being sued as we speak.
Rates ain’t going down in a year!! FED has at least one more INCREASE on deck soon. Rates may flatline for a couple years, but you won’t see a rate cut until 2026 at the earliest.
The USA is fortunate to have 20 to 30 year fixed rates, most countries don’t, the longest term available where I live is 5 years fixed rate, if you are nearing your five year term at the moment good chance you could lose your house
I don’t care, I carry no debt and paid cash for my property/house.
@M K hi Canadian
@超越 New Zealand not Canada 🇳🇿
We needed this for prices to drop
Housing prices are hitting all time high as well.
Higher rates drive down supply, and the prices will only go up from here. So Fed should keep hiking the interest rate. The housing market alone and keep the American economy on top of the world
There’s a Recession every 9th year of every Decade going back to 1929………….
This one is different prolonged by the Pandemic and a lot of Government intervention programs in forms of Multiple Stimulus Checks, Rent Moratorium, Foreclosure Moratorium, etc….
The Housing Crash is on the Horizon
✌✌
Biden’s America
💯😑🎯
You’re acting like republicans didn’t lead us into our last recession 😂
trump’s tax cuts for the rich and stimulus checks he signed
Reply
“you might be able to refinance in a year” that’s what they told people in 07 which led to 08
Loan to equity value will not let any of these idiots refinance. Especially because they financed in 15-20k of closing costs into the loan. WOOOOOW
LOLLL
you have to stay many years to recoup the closing cost
@Bro vro rates? mean Nothing to me. lol
@Wango suckers seek loans
I will never own a home 😂
Are you laughing or crying?
@The Bastard Gift NBC is corrupt and blocks many messages
With you there. I’ll look for some tiny apartment and live there until I die
Bidenomics is on holiday
Didn’t republicans lead us to our last recession? I guess you’ll somehow try to place blame on democrats though
Mortgage rates were between 14 and 20% percent when Jimmy Carter was in office. We had $5. odd even gas days. We could only put in five dollars worth of gas. These days are coming😢
@Suzanne Wrong. Gas in the West is 5 bucks a gallon, California is even higher. It all depends on where you live
@Barry Rammer History does not always repeat itself. Sometimes humans learn better ways of doing things. This time, the Federal Reserve slowed inflation before it got to the high levels inflation got to in 1979 and 1980. President Carter put in Volker, who really tightened the money supply.
One of the reasons inflation came down in the 1980’s from the 1970’s was Miles Per Gallon (MPG) of motor vehicles went from 14 mpg to 23 mpg. Less fuel used, fuel prices came down. Now if people started buying more fuel efficient vehicles and drove slower, prices might come down also. But if enough people buy Battery Electric vehicles, maybe the price of fuel will come down. Also, the reason we had odd/even days was because of price controls, which were a holdover from President Nixon days. Once the gasoline sales industry figured out when people with jobs needed gasoline, they got rid of selective days and times selling gasoline and just increased prices on everybody.
@barryramer6970 it’s not “the truth” it’s your silly opinion on what you think will happen. Don’t get those two things twisted.
@davidjackson2179 Yeah Right have you ever left your mom’s basement. You are going into a depression. The dollar is worthless. You can’t see two aircraft carriers off the Lebanon. They’re not there for a joyride one false move it’s a tender box. Keep trying.
Better then bidens
Is America great again yet?
No, we’re still Building Back Better 😂.
Joe and his administration, the first in Americas history to be elected solely on skin color, have done so much to bankrupt our great country and ask for billions more to finish the job!
https://youtube.com/shorts/ZrkfMH6650U?si=RPsY9XOdF6cjSAdy
https://youtube.com/shorts/wxuTrLhNt3g?si=0dG5nlPMSBFLuFIv
Tha system has always made it very hard for everyone to live a simple life and beyond happy. God government and these nerds are so insecure
People are so freaking stupid. Everyday I hear some real estate person say if only rates went down people would buy again…. And prices will skyrocket again…. The fed failed, people have inflation unanchored, prices will just keep going up forever, it’s not me thinking that it’s all these experts saying it. Unless they are trying to say if interest rates go down houses will be cheaper, if they are saying that I wholeheartedly rescind ever referring to these people as experts.
Everyone is complaining about high home prices. The only way to bring them down is to increase supply and/or reduce demand. Both are happening, but reducing demand is quicker.
yeah? you build houses?
@truthseekers No. I have a degree in Accounting; which requires several courses in Economics. Supply and demand get covered the first week of Econ 101.
@Wildmouse too bad. Your limited degree education has left you with a narrowly minded frame of thought. You want to play with numbers on a screen.
And you are SO believeable with your NEW TROLL ACCOUNT.
You wasted your money, your should have learned how to build a house.
I paid cash for mine 22 years ago. You wasted your time in college getting a degree in one subject. If you really went. I’ve studied at a dozen colleges and universities and had as many majors The reason for college is education, not a degreed field you can plug into kid. Good luck crunching numbers for the next 20 years.
The only way is for people to stop overpaying and being so desperate that they offer 50k over asking they keep raising the prices lol
Banks are doing great out of the cost of living problems, no difficult times for them.
Another bubble burst be coming our way
We’re moving in 2026, we’d like to buy. Hopefully rates go down and home prices stabilize.
We would be staying in our next home for the foreseeable future, so it may be worth it either way?
Interest rates will continue to drop and the best thing to do is stay in your home until they do. One year makes a huge difference.
@Suzanne thank you!
We are currently renting until about 2026; thats when we’d like to buy ideally!
Remember when Trump was President and mortgage rates were super low and real estate prices and rents were affordable? And gas and grocery prices were affordable? And we had a secure border? And we had no wars? Oh for the good ole days.
I remember and pepperidge farm remembers. . I Miss Trump 😞🙏❤️
Indeed 😔.
Trump had the WORST economy since Herbert Hoover and that is fact. Over 6 million LOST jobs. Trump lost more jobs than he created and he added 8 TRILLION to the National debt.
and unemployment was 20%🤡🤡🤡🤡🤡🤡🤡
We’ll see 10 percent rates.
Many new home buyers underestimate the true upfront and financial cost of owning a home versus renting.. It’s not just your mortgage payment, it’s — Hidden costs like home improvements, insurance, maintenance, and taxes and other possible unforeseen expenses.
@truthseekers and 20 years ago. I guess if I wanted to move away from all family that might be an option but enjoy having family and the support it gives. Yes location, location, location, but life does give options and I am solid where I am with the options I took.
@J Brown I’ve been milking my goat for 9 years. So when everyone was wiggin out about the price of milk I went, what?
I built my first house when I was 19. Too bad kids today made themselves useless by wasting all that time playing videos games.
@J Brown Where are you stuck? What Location. Utah?
I left home at 17, graduated and then headed out across america to see all the places I did reports on in school. Couldn’t wait to get away from family.
7- brothers and 2 sisters!
Had had my life’s worth of family in the first 17 years. I had one son, he is having no children. The world isn’t going to get better.
@truthseekers in California , ain’t no landlords going to rent their property to a 19 year olds without proof of 3xrent income. And I’m certain the lease agreement includes no sublease clause.
@5b1b5g0en Yeh well I guess it sucks to be 19 in California these days. By the time I was 19 I built my first house. By myself. We didn’t have video games or farmville.
This is due to the amount of US cash being dumped in Ukraine and now Israel.
This bs happened before and the bubble burst! Banks are reaping the benefits! Who do you think owns the fed?
Just make the insane payments and re-fi later!!! LOL….no…. just keep those borders wide open for any and all!!! That’s the progress that’s going to help NOT Americans!! Vote blue for more!!
Dont be one eye..be a trutful media..
Do not bank on MAYBE . Never work with MAYBE. That is a joke.
You’ll own nothing and you’ll be happy. This is what the democrats want for us unwashed masses.
The banks are the fed! People here don’t seem to understand economics! We went through this before! People have short memories! Subprime mortgages! Just wait till the bubble bursts and the banks will be screaming bail us out again!
America sucks! Pandemic now war?
The average homeowner now makes $120,000 a year. I make $35 an hour and still can’t afford a house 😢
Where I’m from and live (San Francisco), you have to be making around $500k+ to even feel slightly comfortable buying a home.
@Suzannebut where, and what’s your income to house ratio? Important to the context before you go off assuming things.
I make 15/hr
sucks to be you. I made that wage 25 years ago.
And I paid cash for my house too.
@Suzannegreat job ! You and plenty of other boomers were able to buy a home making 20dollars per hour! My dad bought 4! It was much easier back then
As if America has another 30 years left.
Bidenomics everyone
17.5% when I first tried to buy a house. But then, I wasn’t a Complainnial.
nice try, one has to come down price or interest
Boomer alert
Who cares.. honestly. Time change. Everything gets more expensive.. inflation creates markets like Southern California shere a house is 800k and Minimum wage for Taco Bell workers is $22 an hour.. and gas is $6.79 a gallon. The rest of Americans need to stop crying. They have it easy
lol
Who would have thought printing 2 trillion and doubling the money supply a few years ago would have negative consequences. Yellen knowingly gaslights in her interviews. Way too many octogenarians. Vivek 24
You wanted them to gamble with a new virus instead of spending 2 trillion? What if they gambled and didn’t spend any money but the virus turned out to be cataclysmic. Much better to spend/lose 2 trillion than to gamble and lose everything.
@K the virus was engineered in Wuhan and released by the ccp. Also the virus has nothing to do with 2 trillion dollars being printed. The purpose of The inflation reduction act was to increase inflation. Just like how the Democratic republic of the Congo isn’t democratic or a republic.
I live in van down by the river..on a steady diet of government cheese
Keep saving people and stay at home a little longer kids and save. Don’t let the landlords win.
But now and pray the rates go down later doesn’t sound like a good idea… as far as having a low 3% interest rate home.. yup I’m a never seller lol
So why is he saying rates will go down? There’s only two outcomes from our current situation: A. Soft landing. B. Recession.
A… a soft landing means rates will not go down because there will be no need to prop up the economy.
B… a Recession means rates will go down because we went into a recession and need to prop up the economy. Therefore your house cant be easily refinanced at a lower rate because now its worth less than what you owe
Because this entire financial rate hike was due to bs fed reasoning and lower rates are what drive purchasing which fuels the economy
Why is everyone so bent on buying a home? It’s not worth it. I’d rather travel than be a slave to a home.
The only way to fix to normal house prices to go up⬆️ interest rate 👏👏👏 The problem when the house market skyrockets the government should did something . It all caused by greedy realtor agents and flippers. Who ever participated in 2021, 2022 and until mid 2023 hours market should be accountable by the low !!! They purposely created the shortage and created this chaos 🤦🏻♂️.
You mean it getting worse than it already was. 8-9% interest on 30 yr fixed rate loan is absolutely just greed by the creditors.
You will never own that house, and if you are not Veteran at 100% you have to pay property taxes depending on where you live and you can lose your house after paying mortgage for 15 years if you default on your mortgage loan or property taxes. It’s all a big trap! And leaders of these greedy companies the Most High is keeping a record that will testify against you one day!
You will not be able to refinance unless you have 20% equity in your home. Also, it’s not free to refinance. Ask good questions when you buy.
you can refinance with as little as 3% equity in your home. The more equity the better the terms on the new loan, but 20% is definitely NOT needed
It’s beneficial to have 20% equity in your home when you refinance however it’s not required. The reason why they say you should have 20% equity in your home when refinancing is most likely so that you don’t have to pay the premium mortgage insurance if you have one.
Biden’s America..gotta love it.
Mortgage rates started exploding in early 2020. That was not the biden administration
Price goes down then the S & P 500 companies will buy up inventory.
If institutional investors buy up real estate, who exactly is going to buy or rent it from them? The cat is out of the bag. Everyone knows that homes are overpriced. So if institutional investors try that 2020-2022 bait and switch of buying and fliping, it’s not gonna turn out well for them. They will lose on those investments. Home flipping is risky as heck. Folks were lucky to make so much money the past few years because of government intervention in the housing market. Those days are over.
“Just work harder and eat at home more often and you’ll be able to buy a house soon. 🤡”
When rates were at a low , the FED should have stepped in and curbed the buying but instead now its too late . Good luck
Bidenomics
This is the one thing I like about living in Africa; most countries in Africa you pay cash none of this financing crap, and houses and cars do not and I repeat do not depreciate at all new or used here in Ethiopia is where I am speaking of. If you don’t have the cash to buy it you can’t get it. And renting is affordable for the majority of people.
But money depreciates a lot more even in the last year alone dollar exchange rate has dipped by 30-40%. and also the high property price in Addis Ababa is due to the bad security situation in the rest of the country. Can any local person (not diaspora) really afford a house in Addis Ababa based on local income?
@Golden water That is true but compared to America you live a more comfortable and peaceful easy life because the only difference between western living then living in Ethiopia to me it’s convenience; American is more convenient.
“You will own nothing and be happy”
Way to totally cut out agents and the work they do on that flash card NBC. Buying direct from a seller might seem fine, but you want an agent who will manage the transaction, make sure all inspections come back positive and advise on anything someone selling might not be truthful about. There are so many reasons to work with a good agent.
Moving in with my parents, 33 years old. Saving my money to travel and buy groceries.
smart!
must be nice, my parents never owned a home. My dad lives in my brothers house and my mom is a ward of the state. I was on my own at 17. Had to rent my house out and live in my truck during covid
Just, uh.. catching on?😂🎉
Joe Biden ☝️ I did that
Lol they said to buy now and refinance a year ago. I SAY, DONT BUY. People bought overpriced houses for 3 years and its not going to decrease until those homeowners have no option but to start bringing the price down
How about a buydown so your rate is lower the 1st 2 years? 😊 I educate all my clients on this.
I hope home prices collapse. Ive seen on zillow how some home prices have gone up 15 to 37 precent fromyears 2021-2022. That’s riduculous.
Existing homes that were 60k in 2000 are now going for 180k.
Thats ridiculous. The market is broken. Homes should not be that expensive.
Plus, the property taxes go out of control stupid when prices rise that much and the middle and lower class suffer most. Espicially seniors on fixed budgets.
So, i hope the high mortgage rates lead to a collapse in demand which will lead to a collapse in prices.
The only ones that really benefit from the current system are realtors and the super rich that take debt/loans out against the inflated real estate prices of their property to put in the stock market. And, bankers.
You’re correct on all points. What I find ridiculous is that even with a good income, having a roof over your head is a luxury in America. Couples with decent incomes, many with children, who have to live in a vehicle because rent is too outrageous & they’re being priced out of their homes by greedy landlords. Add a single eviction to your credit because of a job loss or other hardship, and their only option other than that is living in a motel. I’m a senior on a decent fixed income, but if I hadn’t gotten lucky & gotten housing assistance, I would be homeless. Capitalism only benefits the wealthy here. Housing prices are completely out of control & need to be regulated, but that would take a miracle when the people in power to make changes cater to the wealthy for the all mighty dollar.
Not included: tax and insurance 😂 that’s whole another issue.
Thanks Biden😒
How exciting 😊
We had a great economy with Trump. Thanks news media for forcing Joe Biden on people.
Remember 66%+ of Americans AKA homeowners and landlords don’t want housing to go down
Punished for existing
Pay top prices for a house while paying top interest rate. Sign me up
And the homeless crisis will continue to grow.
LOL! This clown is hilarious. Just wait till unemployment goes up.
Property owners raising the rent because of the hits they took during the pandemic. Then taking those financial losses out on the next potential tenant making the cost of rentals too high for anyone to afford because employers don’t care they’re not paying employees a realistic livable wage for today’s economy. And that’s not even taking into consideration whether or not the potential tenant has an eviction on their record. The moment they see eviction automatic denial doesn’t matter how old the eviction is. All the while Property Owners not realizing that if they’re not renting out the property they’re not receiving rent payments and there mortgage isn’t getting paid. Gotta love how the common factor in all of this is financial greed.
Live in a van 👍
The crazy thing is despite such a high rate, I still lost my bid last Friday which was 20k above the asking price of 830k for one family house in Long Island, NY.
Well, the main reason why is because there is just not enough supply.
I mean if you’re dumb enough to offer over 20k there’s someone dumber offering more you’re part of the problem
Banks control appraisers now. They’re told not to give a real appraisals because the value of their previous loans would be devastated. If the traditional value to income formula was still being used, many markets would go down 10, 20, 30%. Instead, we have a artificial value assigned. We’ll see where this ends up.
Rates will not fall inflation Is still above 2%.
Thank you Joe Biden for another accomplishment of making buying a house impossible
Tell democrats to stop printing money and making inflation worse…you get what you ask for a true domino…now people cant buy houses…well you can but bigger down payment or hope for the best
That refinance possibility in a year is bull crap. Rates are not going down enough to make it worth the costs associated with refinancing. Yes, there are closing costs every time you get a new loan.
lol, “when rates go down in six months”.
American housing market needs to be regulated, not the interest.
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Rentals are owned by a few millionaires and overseas owners who don’t care if rent is ridiculous and if Americans are on the streets. Plenty of homes and homes to redo. But, they keep building homes people can’t afford. Shouldn’t have been building when supplies were ridiculous high…. All no common sense. No one 40 and under will be owning homes. Other counties will own American homes
Rates will drop mid next year because the 2024 election 😂
Fed interest rate = billions for foreign aid
Biden economics