Posted on 06/22/2023 7:09:06 AM PDT by millenial4freedom
Now that inflation is waning, there is hope that mortgage rates will fall to 5% in 2024. These lower rates would make borrowing to buy a home less expensive, but they could make the housing market much harsher for first-time homebuyers. That’s because a drop in mortgage rates would cause an increase in demand, and more demand without more supply is a recipe for competition. Like in 2021, we could see a spike in bidding wars, with the typical home selling above its asking price in record time. First-time buyers should prepare for a challenging road ahead as inflation dies down.
(Excerpt) Read more at forbes.com ...
Kinda troubling to see firm like Blackrock buying at the (thus far) top of the market.
That either means they’re very stupid, or very smart and know that they’re buying low.
Homebuyers should hope the former, but doesn’t look good.
Along with weaponizing the federal agencies against the American people, this is what Obama meant when he said he wanted to “fundamentally transform” the U.S.
Yes, we have had several inquiries from investors who want to turn our house into a short-term rental, Airbnb, Traveling Nurses, etc... Our area apparently has a shortage of this type of housing. I spent many years fixing the house up with our own family in mind and the thought of it being turned into some sort of rental is a little distasteful.
I believe it’s to induce chaos to bring about a government takeover of housing.
“Now that inflation is waning”
Hahahahahahahaha!
That was good. Tell me another one.
No.
If the Fed increases interest rates, there will be increased unemployment. If government cuts spending, there will be increased unemployment. I prefer the latter of the two because it solves more problems and increases freedom.
We need to grow out of inflation through increased productivity. In fact, that directly addresses a root of inflation - a lack of productivity where supply is not produced to meet demand.
Presently, fiscal policies prohibit us from growing out of inflation. Regulatory policies also decrease productivity and cause another barrier to recovery.
Now suppose fiscal and regulatory policies are properly addressed. That’s the starting place, by the way. Unemployment increases on two fronts. The cuts in government and government spending require government employees to become unemployed. From an economic point of view, this is a good thing. Those people are counterproductive - they cause inefficiencies in the private sector.
Secondly, when businesses adapt to changes in fiscal and regulatory policy they will create more unemployed. The people that help businesses comply with regulations are no longer needed. Additionally, cuts in government spending should dry up subsidies to businesses - corporate welfare. This will cause many worthless businesses to fail, leading to more unemployment.
Changes in government fiscal and regulatory policies will force businesses to be more competitive. Inflated labor cost will have to be addressed. I almost hate to write this, but a good 15-20% of employees in America are counterproductive. You know what I’m talking about. They are the ones that do little more than get in the way of truly productive workers. It causes the productive to rework the product of the unproductive. They are the ones that block business improvements when they are in management positions. They are the ones that buy into every new unproven boondoggle at the peak of inflated expectations in Gartner’s Hype Cycle. They are the ones in DEI and HR departments. Businesses are rife with unproductive employees and decades of inefficiencies built into business processes to accommodate the unproductive.
Think about it for a moment. Two in ten employees people in most businesses are not needed. It’s not that big of a number if you look at a single office or workplace, but when that it is just partially reflected in the unemployment rate the number is staggering.
The really bad news is there are a couple of generations in which a majority of people that have educations that qualify them to do nothing but get in the way. They also have no idea how to do manual labor - I’m not taking about something skilled like a machinist or mechanic. They can’t even dig ditches.
They will need to learn the hard way. I have little empathy. They made poor life choices, not you or me.
I don’t see inflation waning in the grocery store. Prices keep going up.
Inflation isn’t cooling here in SE Texas - instead, just like the thermometer, it’s rising! (But, unlike the thermometer, inflation is going up because of mans actions)
Yes, the 6/7% (or whatever the full service broker is charging) would be the total commission, to be split between listing and selling broker. Technically, fees are negotiable. Also, a broker charging you a1% listing fee will still be asking you to pay the selling agent fee, so really, you’re maybe saving a couple of points off the listing side, and that’s all.
As for the lender and his flyer...pay attention to the fine print at the bottom and the APR in the block. MIP (mortgage insurance premium) will raise the 5% rate...with some cash even paid upfront by the buyer.
Finding a flat rate lawyer is a good thing. Not sure how it works in your state, but in NC the closing attorney technically works for the buyer. The seller is free to get their own atty, but most sellers opt to let the buyers atty do the work for them. They’ll pay the closing atty a fee to do their side of the closing.
Inflation cooling. That’s rich.
Of course it’s all statistics. When looking year to year, when year 1 is at 9%, it is highly unlikely we will see anything that high year over year.
But when you look at 2021 and go back to that date, inflation is soaring.
When it’s cheaper to make my own ice cream than buy a quart and a half at the grocery store…you know things are bad.
They are used to pricing things with their 6% commission. In the end, you will likely end up with the same “net.”
All things are local.
My nice little suburb usually has 40-50 homes on the market at then end of the school year. We have lots of 3-5 year owners who get transferred out of the area, and thus there is a pretty cyclical market.
This year there were 15 homes on the market. My value has gone up 15-20% this year. It’s nuts. I wish I had somewhere to move…
We have been approached by quite a few mortgage brokers. This was the guy who had the best advertised rates and still seems to have a good reputation in this area. I assumed we would be hearing from Realtors, but I did not realize that mortgage brokers would also be calling us, but they were some of the first. My typical impression of mortgage brokers is that they are even higher on the shyster scale than Realtors and lawyers.
We were also considering a seller paid rate buy down to make the payment more affordable for the first two years.
I’m still trying to get my head around the ‘inflation cooling’ BS, I just went to Wally’s yesterday and the prices have jumped big time from 7-10 days ago, it’s insane! No matter what people can actually see happening everyday we supposed to buy inflation is cooling because that is coming from the most inept intentionally destructive of America administration since Obamarammadingdong! If someone had told me then that there would be a worse administration I would have laughed in their faces.
If you want to see how deluded some people are go over to You Tube and click on the Lincoln Project videos. They’re enough to make your blood pressure go through the roof.
These idiots actually believe Biden is doing a fantastic job.
I’m trolling the hell out of them.
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