Posted on 05/02/2022 5:52:33 AM PDT by Browns Ultra Fan
We now have the proverbial double whammy happening … soaring home prices AND soaring mortgage rates.
The theory is, of course, that The Federal Reserve will slowly remove its staggering monetary stimulus leftover from 1) the financial crisis of 2008 and 2) the Covid recession of 2020. As you can see, the sheer volume of monetary stimulus remains outstanding and it is the EXPECTATIONS of The Fed tightening that is caused the 30-year mortgage rate to rise.
So, The Federal Reserve is participating in The Great Reset by helping send mortgage rates to the moon. But with soaring mortgage rates and still red-hot home price growth, a typical buyer’s monthly payment is up 39% —the biggest annual gain on record.
While I used the Case-Shiller National Home Price Index YoY, Redfin shows more contemporaneous home price data with April 24 median home sales price at 16.8%.
Thanks to The Fed, we are seeing homebuyer mortgage payments are up 39.4% YoY.
As inflation continues to damage America’s middle-class and low- wage workers, we may see regulations going into effect from the Consumer Financial Protection Bureau protecting consumers from … themselves.
(Excerpt) Read more at confoundedinterest.net ...
The difference with this housing market and former ones is that there is such a high demand that keeps the prices high. Unless something drastic happens I don’t see an opportunity for first time buyers to get a deal. Unless you buy the land and build on it.
No. The wealthy are unaffected. The Fed and other central banks around the world are coordinating the pumping of liquidity into their economies, causing this inflation and higher interest rates. The US is not doing this alone.
Couple this with the high oil prices, the war in Ukraine and supply chain crunch, these central banks are setting the stage for a global (western) economic collapse that would foster the great reset.
The wealthy that survive must be loyal party members of they will be eliminated one by one afterward.
But the stage is set for the great reset....to transfer not just wealth, but also control to the globalists, wealthy or not.
To borrow at 5% in a 10% inflation environment is a stroke of good fortune.
It beats borrowing at 3% in a 3% inflation environment if you can make the payments.
Add increasing mortgage carrying costs to the heating crisis that will be inevitable in the Northern states and you have a crisis of epic proportions. I believe that even with the 24/7 non stop Trump attacks, the people will want him back along with his proven policies.
Building materials and pre-fabricated home prices are outrageous. It is not economical to build on land either. I recently looked at building a small 3 bedroom ranch (1400 sq feet) that was just at $100k 2 years ago. The house is now over $200k and with everything, my total cost would have been over $350k.
There is no return on that possible. I rented (also inflated prices) and will wait for the collapse to grab a home at bargain prices....if there is no great reset.
Deals are still available outside the hot areas.
Hot areas include Austin, Dallas, Miami, Nashville, Tampa, etc.
More like Klaus Schwab is the front man for the central bankers’ Great Reset.
Add Blackrock and others who have bought up real estate. We are going to need God to intervene. We are past the point of being able to do anything about this.
Gonna take a miracle.
As someone whose first mortgage was at 12 or 13%, I have to chuckle at the “soaring” mortgage rates.
Agreed, though God would work his miracle through us (in the larger sense).
There was a FHA 245? program back in the early 1980s that I believe offered lower initial payments.
My Democratic neighbor and I used to talk about living in Palm Ghetto.
Our neighborhood has become expensive.
There are other areas in the USA that still have lower cost housing, such as Meridian, Mississippi.
The best time to buy a house was twenty years ago. That being said, the best time to buy a house in 2042 might be right now. Who knows how much the scale of things shall have accelerated to by then.
Maybe we will have fusion energy to supply our electrical needs by then.
Or pigs might fly.
There’s a saying in construction “ now is the time to build “. Cause building products ain’t getting any cheaper.
The bid just came back from the builder at $468,000! Over $302 per square foot, for a basic house! This does not include the land (which we own outright,) just the construction costs.
My wife and I are devistated.
I do as well! I remember getting an 11% mortgage on a new home when the market was 15%+. It was only possible because the builder had secured $Millions in firm lending commitments for his project. Waited 9 moths for the home to be completed only to find out it had a MAJOR structural flaw (missing support pillars in the foundation, they had not been installed). Raised hell with the builder who only laughed pointing out that he would be glad to give me my money back since the model I was buying had risen 10%+ while I was waiting to occupy! The builder used a huge jack under the first floor to raise the house enough to install the support pillars which had not been installed!
As you can imagine, drywall cracks and door frames flexed on both the first and second floors. They patched over the cracks and I closed on the home.
“The bid just came back from the builder at $468,000! Over $302 per square foot, for a basic house! This does not include the land (which we own outright,) just the construction costs.”
I’m sure you checked out modular homes. Is that not an option where you are?
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