Posted on 01/01/2022 8:07:10 PM PST by ChicagoConservative27
Mortgage lenders issued $1.61 trillion in purchase loans in 2021, up from $1.48 trillion in loans issued in 2020 and marking the highest mortgage borrowing numbers ever recorded.
The 2021 figures exceeded a previous record set in 2005, when $1.51 trillion in loans were issued, according to The Wall Street Journal.
(Excerpt) Read more at thehill.com ...
They overpaid but they will be paying back with inflated dollars.
Wheelbarrows-full for a loaf of bread.
Buying a home is orders of magnitude a better decision than buying a Degree from a lame brick and mortar Uni.
My guess is it’s coming soon.
Iirc Freddy and Fanny wanted to increase their loan guarantees into the 6 figure range.
Sorry, 7 figure range.
Shorting the dollar by taking on dollar denominated debt.
I hold a mortgage on a property in NM... I have a feeling that someday the payments I receive will be worth very little.
I should start stacking silver with the income from that, as a hedge.
Borrowing to buy a home at present isn’t a bubble or inflationary problem.
Unlike prior to the 2008 mortgage crash, lenders are vetting mortgage applicants as to employment, earnings and debt.
The interest rates on mortgages for the last few years and going into 2022 are still low on mortgages compared to years back when a lot of us who now have paid up homes. I paid 12 % and it didn’t go down to 7% until a year or so later when Reagan became president and rates when down.
Having paid equity in a home gives you a bit of savings that is a fall back if you have a financial need that is important or dire enough to tap the equity.
Black Rock is buying up all the houses that landlords defaulted on because their renters got to skip paying rent.
They’re going to own it all, soon.
And we will own nothing, and we will like it.
“borrowing to buy a home at present isn’t a bubble situation”
2 out of 3 people including Goldman housing specialist on Fox business yesterday are predicting a major asset bubble collapse in 2022 because the feds need to raise interest rates.
Homes are insanely overvalued right now.
Those people who bought them may have been vetted more than 2006-2008 but if home values drop they will soon be underwater.
I’m expecting a huge correction this year
This is the smart move- borrow against your home at artificially lowered fixed interest rates, then pay it back over time while the dollar is debasing at a rate of 15% per year.
What if, instead, interest rates rise?
Regards,
In my area in northeastern NJ it seems none of the buyers are Americans; many are foreigners with children, and that is why the teachers’ unions’ political arm (the Democratic Party) is trafficking them here. Fewer and fewer Christmas decorations as non-Western immigrants fill areas abandoned by Americans...
Plenty of younger people DO like it; they don’t want the responsibility of maintaining a home or vehicle, and gladly outsource that to the title holder. They’d rather keep their mobility so they can flee as areas go south or jobs move, and many don’t intend to have families anyway so home ownership is less important to them than previous generations.
In my town the new construction of choice (where any undeveloped land is available) are giants multi-family hives which don’t accommodate children well; these are for the “last generation” Americans who will work out their days paying for all of the foreign children trafficked into the area from around the world to keep the schools open/housing full.
There weren’t many defaults and no they are not. Maybe 1% of homes
They do when rent goes up 2-3% a year. Not as interested with rents up 15%+ a year
No problem; they pick up and move.
That was the problem in NJ, but with property taxes instead of rents; homeowners were stuck with higher property tax payments, which damaged the value of the home (if they could find a buyer). The cat is out of the bag that we are simply renting our homes from the teachers’ unions.
As costs go up (especially property taxes), even businesses flee - and those without mortgages are best suited to follow them to greener (and cheaper) pastures. They’ve stopped building single-family homes in my area because there is not much of a market for them; hives for childless adults and two- and three-family homes are what sells. You’re left with an area with a LOT of people who aren’t invested in it. Cities are such areas on a massive scale...
When rents start going up $200+/month every year instead of $25/month, the mortgage option looks better since it stays basically flat whereas in 5 years, your rent is $1k/month higher and you own nothing. Plus your home appreciated.
No, the increase is about 9% and represents the upward pressure on real estate pries with a covid movement kicker.
In several cities, the price of real estate is driven by demand as there fewer homes for sale and many buyers, some of whom are moving into the area because of company movement.
The price of new homes reflects increases in material prices.
An increase of 9% is not a problem
Amen......
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