Posted on 08/11/2023 6:44:37 AM PDT by Diana in Wisconsin
(I expect to see more banks go under this fall)
I’ve recently been saying that the BidenDepression 2023 could start as early as September, 2023-Spring, 2024
Which the latter would make it BidenDepression 2024.
It’s just a guess, admittedly
There’s no way that this disaster can continue
My daughter’s rate is 2.9%. She wants to move, but rates around here are 7%. That would crush their payments.
I want to sell my home, but at the prices there is virtually nowhere to go.
The economy will freeze because no one can “move.”
The banks didn’t borrow those funds for 30-year terms to make 30-year loans, though. See the details of the failure of Silicon Valley Bank for an example of why these banks are in trouble.
I never said they were. I said the industry has the deck stacked against it. That’s why even banks run by smart people fail.
“The banks didn’t borrow those funds for 30-year terms to make 30-year loans, though.”
Yes, they did.
I provided evidence that the deck isn't stacked against it. You did not tell the whole story.
Bail. Right. And go where? Stuff even more in your mattress? Buy more precious metals which are only semi-liquid?
You are always going to have people “moving” permanently … either selling a home to downsize, or selling upon the death of the owner. You won’t see too many amateur investors flipping houses for a while, though.
Again, and do what? (See post #18.)
FREepmail.
Points and fees are the only costs the borrower needs to consider here, and over the life of a loan with a 30-year amortization they are very low.
Nobody is going to refinance a 30-year fixed-rate mortgage unless the interest rate is now LOWER than the original one. And the odds of the property appraising at a lower value in an environment of falling interest rates are almost zero in most areas of the U.S.
That statement is inconsistent with observed reality.
BFLR
If I can afford to pay $2,000/month on my mortgage, I can afford to buy a home with a $300,000 mortgage at 7% or a $475,000 mortgage at 3%.
What did you think was driving the escalation in home prices after the COVID fiasco?
I'm not surprised. Many factors drive the price of residential real-estate. Actual home-owners are aware of this.
“I’ve recently been saying that the BidenDepression 2023 could start as early as September, 2023-Spring, 2024”
I’m guessing along the same time-line. And I’m arranging things in my household/finances accordingly. If I’m wrong, no harm caused. If I’m right then I’ll be glad I made those plans.
Lord willing, I’ll be able to pay off most of what I need this morning month but I still have a car needing parts that are difficult to get and another needs minor work.
The first one would still have to go to the body shop - most of that paid by other party’s insurance once I can obtain the parts.
Then we’ll see how the rest of the year goes.
what about the safety of credit unions we have a small one here. Do they work with banks or are they their own animals.
Portfolio runoff and tighter underwriting will cure most of this. Overleveraging has always been both a temptation and a problem for banks.
I’ve been involved in residential and commercial real estate investment for almost 25 years. I know a thing or two about how this works.
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