Posted on 09/23/2022 12:35:01 PM PDT by NeverCheney
Real estate investors have largely done well for the past few years. But with higher interest rates, things could be about to change.
The U.S. Federal Reserve raised its benchmark interest rates by 0.75 basis points on Wednesday, marking the third such hike in a row.
Higher interest rates translate to bigger mortgage payments — not good news for the housing market. But cooling down housing prices is part of what needs to be done to bring inflation under control.
“For the longer term what we need is supply and demand to get better aligned, so that housing prices go up at a reasonable level, at a reasonable pace, and that people can afford houses again,” Fed Chair Jerome Powell said on Wednesday. “We probably in the housing market have to go through a correction to get back to that place.”
“From a sort of business cycle standpoint, this difficult correction should put the housing market back into better balance.”
Those words might sound scary, especially to those who lived through the last financial crisis — where the housing market went through a very, very difficult correction.
But experts say there are good reasons to believe that regardless of how things play out, it won’t be a return to 2008.
(Excerpt) Read more at yahoo.com ...
7.069 on 30 year fixed.
Yeah, you do your thing so-far-behind-the-curve-not-even-funny-anymore PowellIdiot.
YAHOO: Don’t worry, the disaster about to wipe you out won’t be as bad as the last time the government wiped you out, probably...
Lulz!!!
The bankers are doing their jobs.
The job of getting the bloat out of the equities & real estate markets.
Yeah. Let’s keep the interest rate low so savers get no interest and inflation continues to spiral upward.
Like I can believe anything yahoo prints
Yahoo = Libtard Suckups
“7.069 on 30 year fixed.”
Yikes.
If the refi market was not dead already that is a stake thru the heart.
Anyone in that industry is probably out of a job.
You could find 30-year fixed lower but still around 6.4+.
A drastic slowdown in the housing market means a big slowdown, and layoffs, in the contruction industy, a big slowdown in sales of appliances and other home furnishings (layoffs in retail stores and in manfucturing). Meanwhile, the media will be spinning like crazy, telling us we’re not in a ‘real’ recession.
House prices need to be cut in half,
or salaries doubled.
That’s how skewed it all is right now.
2.5 - 3 times annual salary for a modest house, NOT condo or TownHouse, with a 5% mortgage.
That world my Fine Featherd Fiends is a land from long ago, and far, far away.
“”7.069 on 30 year fixed.””
I suspect there are many ‘old-timer’ FReepers who wished they could have gotten a 7% rate on a fixed 30 year mortgage.
It’s not the job of an unelected private bank to regulate home prices.
They destroyed the value of our cash savings and are now wrecking our assets’ value. Part of the Reset/GloboHomos/Soros/Schwab plan.
“7.069 on 30 year fixed.”
That’s cheap. Remember the 80’s?
Doing either will destroy the American Economy.
Which is saying something.
Our first house we were at 7+%. Albeit, prices were more reasonable on homes.
Got zero offers in 3 weeks. Last year homes in this hood were selling above asking price sight un-visited.. people saw pictures and videos and bought.
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