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Simply Unaffordable! Soaring US Home Prices + Soaring Mortgage Rates + DECLINING Real Wages Makes US Housing Unaffordable For Millions (MBA Refi Applications Drop 14.37% From Preceding Week)
Confounded Interest ^ | 03/23/2022 | Anthony B. Sanders

Posted on 03/23/2022 6:59:23 AM PDT by Browns Ultra Fan

US housing is getting simply unaffordable.

US mortgage rates are soaring, US home prices are soaring, The Fed’s balance sheet is still growing, and US average hourly earnings are growing at a fraction of home price growth.

The unafforable nature of US housing prices is similar to that of 2005-2007 when home price growth greatly exceeded wage growth.

Another side effect of soaring mortgage rates: MBA refinancing applications plunged 14.37% from the preceding week.

Let’s see if The Fed actually tries to extinguish the affordability fire.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: affordability; fed; housing; mortgage
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Biden has to go!! The problem is that unless it is Trump, we will get a perfect substitute.
1 posted on 03/23/2022 6:59:23 AM PDT by Browns Ultra Fan
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To: Browns Ultra Fan

And your solution is...?


2 posted on 03/23/2022 7:02:35 AM PDT by DugwayDuke (Most pick the expert who says the things they agree with.)
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To: Browns Ultra Fan

https://freerepublic.com/focus/f-bloggers/4048991/posts

Related thead


3 posted on 03/23/2022 7:08:18 AM PDT by woodbutcher1963
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To: Browns Ultra Fan

The morons in the public need to be hurt badly before they will finally understand it’s Dems who are hurting them.

Yes, I know, lots of innocents are hurt too. But, if the morons aren’t educated, the pain for all will continue until there is nothing that can be done.


4 posted on 03/23/2022 7:08:52 AM PDT by brownsfan (It's going to take real, serious, hard times to wake the American public.)
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To: Browns Ultra Fan

Yep. This is what I said before. People are getting poorer due to wages not keeping up with inflation. Interest rates are rising. House prices have risen incredibly steeply the last few years. The number of buyers in the market is going to crater when you put these factors together.

What comes next is house prices will have to go back down by a good bit.


5 posted on 03/23/2022 7:10:19 AM PDT by FLT-bird
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To: Browns Ultra Fan

Brandon did that!


6 posted on 03/23/2022 7:11:26 AM PDT by Chgogal (Whatever Biden decides to do, do the opposite.)
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To: Browns Ultra Fan

Rates over 5% will pop the bubble.

They are headed to over 8%.

I bought my first house in 1989 on a VA loan at 10.5%, so it definitely can happen.

And it’s way overdue.


7 posted on 03/23/2022 7:13:43 AM PDT by Mariner (War criminal #18)
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To: Mariner

Rates in 89 had already dropped a bunch.
Mortgages rates were over 14%


8 posted on 03/23/2022 7:16:55 AM PDT by HereInTheHeartland (remorse)
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To: Browns Ultra Fan

And the average sale price fell from $423K to $400K. (Fox Business)


9 posted on 03/23/2022 7:21:45 AM PDT by G Larry (Tolerance will rise until intelligent people are banned from thinking to avoid offending imbeciles)
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To: Browns Ultra Fan

It’s a seller’s market. Now is the time to sell. They’re not building medium-priced housing anymore, it’s all $299,000 and up. Housing in good school districts near access roads to a city center, older homes and townhouses and starter homes, will sell fast and garner multiple bids.


10 posted on 03/23/2022 7:25:47 AM PDT by Ciexyz (Prayers for America.)
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To: Browns Ultra Fan

Simply Unaffordable! Soaring US Home Prices + Soaring Mortgage Rates + DECLINING Real Wages Makes US Housing Unaffordable For Millions (MBA Refi Applications Drop 14.37% From Preceding Week)

Wait. You mean housing prices going up 30% in a single year isn’t a sustainable model?


11 posted on 03/23/2022 7:27:20 AM PDT by Flick Lives (The CDC. Brought to you by Pfizer)
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To: Mariner
I don’t think the underlying economic factors support that scenario.

The biggest difference between today and the late 1980s is demographics. The nation’s minuscule population growth rate, coupled with our upside-down age cohort statistics (I read somewhere recently that there are now more Americans over the age of 80 than under the age of 2), are very strong DEFLATION indicators. This kind of environment simply won’t support interest rates much higher than what we have now.

12 posted on 03/23/2022 7:27:28 AM PDT by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
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To: Browns Ultra Fan

In the Biden Economy and Economic Plan, this is not a bug but a carefully crafted feature. Must not allow uppity peasants to own property.

Unless it is given to them by Government with proper conditions and strings attached.


13 posted on 03/23/2022 7:33:23 AM PDT by sjmjax
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To: DugwayDuke

The only solution is to let the market sort it out. Home prices need to come down, and they will if no one can afford them. However, given the administration we’re stuck with, they will undoubtedly make the situation even worse.


14 posted on 03/23/2022 7:40:13 AM PDT by bigdaddy45
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To: FLT-bird

What comes next is house prices will have to go back down by a good bit.


supply and demand. Will have to increase the supply to bring down prices. Do you see that happening?

How is the govt going to fix this? The govt is the economy. “What is good for gm is good for the country” left a long time ago.


15 posted on 03/23/2022 7:43:36 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: Browns Ultra Fan

Parody of Simply Irresistible
Song by Robert Palmer

Lyrics
How can it be permissible
they compromise my principle, yeah yeah
That kind of house is mythical
It’s anything but typical

It’s a craze you’d endorse, she’s a powerful force
You’re obliged to conform when there’s no other course
She used to look good to me, but now I find her
Simply unaffordable
Simply unaffordable

The loving is so powerful, huh
It’s simply unavoidable
The trend irreversible
Home equity’s invincible
She’s a natural law, and she leaves me in awe
She deserves the applause, I surrender because
She used to look good to me, but now I find her
Simply unaffordable
Simply unaffordable
Simply unaffordable

(She’s so fine, there’s no tellin’ where the money went)
Simply unaffordable
(She’s all mine, there’s no other way to go)
She’s unavoidable, I’m backed against the wall
She gives me feelings like I never felt before
I’m breaking promises, she’s breaking every law

She used to look good to me, but now I find her
Simply unaffordable
(She’s so fine, there’s no tellin’ where the money went)
Simply unaffordable
(She’s all mine, there’s no other way to go)
Her methods are inscrutable

The proof is irrefutable, ooh-ooh-ooh-ooh-ooh
Housing so completely visual, huh
Our lives are indivisible, yeah yeah

She’s a craze you’d endorse, she’s a powerful force
You’re obliged to conform when there’s no other course
She used to look good to me, but now I find her
Simply unaffordable
(She’s so fine, there’s no tellin’ where the money went)
Simply unaffordable
(She’s all mine, there’ no other way to go)
Simply unaffordable
(She’s so fine, there’s no tellin’ where the money went)
Simply unaffordable
(She’s all mine, there’s no other way to go)
Simply unaffordable

Source: Musixmatch
Songwriters: Robert Palmer
Simply Irresistible lyrics © Heavy Nova Music


16 posted on 03/23/2022 7:51:32 AM PDT by Kevmo (Give back Ukes their Nukes https://freerepublic.com/focus/news/4044080/posts)
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To: FLT-bird
"Barbara Corcoran: Homebuyers ‘should move faster’ amid soaring prices"

https://finance.yahoo.com/news/barbara-corcoran-homebuyers-should-move-faster-amid-soaring-prices-141530835.html

I find it shameful that these so-called real estate gurus are using their influence to scare buyers. None of us knows what lies in the future, yet they (the gurus) act like they know exactly what lies ahead.
17 posted on 03/23/2022 7:56:26 AM PDT by millenial4freedom (We are literally paying politicians, many of whom weren't dutifully elected, to worsen our lives!)
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To: PeterPrinciple

The demand is going to crater.


18 posted on 03/23/2022 8:00:03 AM PDT by FLT-bird
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To: Browns Ultra Fan

Add to all this the climbing rate of commercial vacancies and there is a real estate and lending crash coming. Sit on cash/gold/silver and be ready to buy when the market bottoms out.


19 posted on 03/23/2022 8:03:17 AM PDT by CarmichaelPatriot (Recovering Kalifornian... Loving Alabama!)
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To: DugwayDuke

My solution is Tenancy in Common, Space Assigned Common Ownerships [SACOs]
https://andysirkin.com/tenancy-in-common-tic/general-information/


20 posted on 03/23/2022 8:12:37 AM PDT by Kevmo (Give back Ukes their Nukes https://freerepublic.com/focus/news/4044080/posts)
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