[millenial4freedom]

Who would have thought this would have happened when you print an exorbitant amount of dollars in such a short period of time?

[blackdog]

Back when we were stupid enough to buy a house using a mortgage, we followed the rule that our payment could be no higher than 2 weeks of unemployment (Should one of us lose a job).

The fuse is lit on this bubble bomb.

[CatOwner]

Our kid purchased a house 18 months ago, and the value of it has gone down. Depressing for a first-time home buyer. That said, they locked into a 30-year fixed @ 3.125%. Even with the lowered value of their house, they would be paying at least 1/3rd more on their mortgage @ 6.75%.

[dware]

Anyone dumb enough to submit to the slavery of being a caretaker for the state, especially in this market, gets what they deserve.

[ConservativeInPA]

I understand the impact of increased interest rates. What I do not understand is why banks increase their risk portfolio by lending to people when a mortgage payment is 41% of a person’s income. I don’t understand the thought process of anyone willing to put themselves at such a financial disadvantage. Spending that amount of money on housing does not allow savings and a diversification of investments.

Personally, it has always been a goal to save 30% of my income each month. While that was not always possible, especially when raising a family, it was a worthy goal that helped prioritize spending. That includes spending on housing. It used to be recommended to not have a mortgage payment greater than 30% of income. 30% was slightly higher than my personal risk tolerance. It limits long-term savings and investments, especially when that does not include savings for what I consider short-term savings for big ticket items like vacations, automobiles and emergencies. Those are things you do not want to finance through borrowing if you ever want to become debt free.

The key to being debt free is, believe it or not, is not going into debt. That snowballs over time. It becomes increasingly easier to become and remain debt free when you save and pay with cash.

[Vermont Lt]

In my suburban town the market has pretty much collapsed in terms of inventory. Usually at this time of year there are 35-40 homes on the market as people rotate out of town.

Currently there are 17 homes on the market in my town.

The “Zillow Value” of my home has gone up $25k in the last two months. The house next door sold for above asking the day it went on the market.

While I appreciate the higher value to my home, its kind of scary to see the prices continue to increase...which in turn means, there is nowhere for me to move if I want to downsize.