Oh wait. Mortgages rates were 9.5% in the 80s. I guess we'll survive.
Posted on 01/13/2022 7:55:44 AM PST by Browns Ultra Fan
Mortgage rates in the U.S. rose for a third straight week, reaching the highest point in almost two years.
The average for a 30-year loan was 3.45%, up from 3.22% last week and the highest since March 2020, Freddie Mac said in a statement Thursday.
That would increase the burden on homebuyers who are already stretching to afford a purchase. Rates for 30-year mortgages tumbled to a record low of 2.65% a little more than a year ago.
Cheap loans have helped fuel a housing rally that’s still running hot even as home prices soar out of reach for many Americans.
But wait! The REAL 30-year mortgage rate (nominal 30-year rate – CPI YoY) is -3.59%.
Lael Brainard, Biden’s nominee to be Vice Chairman of The Federal Reserve, has been one of the “inflation is transitory” crowd. US Senator Toomey is questioning Brainard in today’s hearing. From Toomey’s opening statement:
Last year, Governor Brainard repeatedly insisted that inflation was transitory. We have now had nine consecutive months where inflation has been more than two times the Fed’s 2% target. That makes it pretty clear that inflation is not transitory. Yesterday’s CPI release of 7.0%—the highest in 40 years—confirms that.
Inflation is a tax that is eroding Americans’ paychecks every day. Even though wages are growing, inflation is growing faster and causing workers to fall further and further behind.
At least the REAL mortgage rate is negative!
I hope Senator Toomey shows Brainard this chart of “transitory” negative wage growth.
Negative wage growth and negative REAL mortgage rates. What a total mess!
Well, it could be worse.
(Excerpt) Read more at confoundedinterest.net ...
how are bill and her still alive? along with Biden and Pelosi
all these walking corpses should be dead.
Just as the price of REAL gold and silver are different than the “paper” price, The REAL interest rates paid for loans are different than what is reported as “interest rates”.
“all these walking corpses should be dead.”
It would be good for America if they were.
Oh wait. Mortgages rates were 9.5% in the 80s. I guess we'll survive.
Hey many people here, have been been banned for typing less incendiary words, but I agree with you!
Anything under 5% is simply free money. 3.5% is still damned cheap.
“Oh wait. Mortgages rates were 9.5% in the 80s. I guess we’ll survive”
5-6% was average ten years and we survived just fine.
Instead of buyers buying that $400k mcmansion they will downgrade to the $375k mcmansion without the home theatre and man cave. The horror.
Bingo.
“Instead of buyers buying that $400k mcmansion they will downgrade to the $375k mcmansion without the home theatre and man cave. The horror.”
Exactly, spot on.
When will the housing bubble pop again? I don’t know when but I’m absolutely certain that it will occur in an election year.
That’s how you slow inflation, rising interest rates.
“Oh wait. Mortgages rates were 9.5% in the 80s. I guess we’ll survive.”
My first real estate sale in 1984, interest rate was 12.5%.
yeah, its just time for the next generation honestly. It’s time for all these 70+ peeps to ride off into the sunset.
“yeah, its just time for the next generation honestly. It’s time for all these 70+ peeps to ride off into the sunset.”
I’m mid 60s. I know what time has done to my memory, my mental sharpness and my energy level. There should be an age limit for public service. I know there are exceptions, but I’d rather lose the few versus having a bunch of demented, corrupt fools running things.
I think age 72 is a good limit, but that is open to debate.
Yes absolutely. We need gamers running things.
Still amazingly low by historical standards. I’m listing my house next month, while there’s still time.
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