mortgage rates?

[Bugler]

Rates are at all-time lows still. Even if they raise 1%-15% over the next two years, they still will not be overly high. I would be more concerned about buying an overpriced home.

The slide in the stock market and crypto market this year, and this week, really stripped a lot of wealth from consumers. If they have less money to spend as a result, they will not be chasing as hard at limited goods. This could reduce some inflationary concerns, and reduce the need for the feds to act as aggressively in increasing interest rates. Will be interesting to see what the feds do if the market extends its decline. Had the market not dropped, I would have expected a rate increase in March. However, currently, the feds are still buying bonds to add liquidity to the market, although they have reduced the rate at which they do so.

[Yellowfin123]

Originally Posted by muskyed

Don't think you are going to see much if any drop in home prices soon. Reason being, there is few homes for sale, and quite honestly borrowing is cheap, even if it goes up. Rates have been so unrealistically low for such a long time that sooner or later it will have to change. Traditional rates were in the 7% range for most ever, although I remember them being in the 13% range with excellent credit for awhile, and people still bought homes. If present rates were to go up 1/2-1%, it's no big deal, still cheap money. Don't expect a big correction in home pricing till the supply increases as a minor increase in borrowing rates will not move home prices without an increase in home supply.

yes true

[Yellowfin123]

Originally Posted by Bugler

Rates are at all-time lows still. Even if they raise 1%-15% over the next two years, they still will not be overly high. I would be more concerned about buying an overpriced home.

The slide in the stock market and crypto market this year, and this week, really stripped a lot of wealth from consumers. If they have less money to spend as a result, they will not be chasing as hard at limited goods. This could reduce some inflationary concerns, and reduce the need for the feds to act as aggressively in increasing interest rates. Will be interesting to see what the feds do if the market extends its decline. Had the market not dropped, I would have expected a rate increase in March. However, currently, the feds are still buying bonds to add liquidity to the market, although they have reduced the rate at which they do so.

looking due west of you over in johnson county, you know the area, the homes have gone up steadily over the years, never down, and not a big jump from the covid spike, they live in prairie village now where people are spending 300-400k then bulldoze for the lot

[grizzley]

Two edged sword, either buy now at a higher interest rate or watch housing prices continue to rise.
Either pay low interest on a $300K house or wait and pay $450K for the same home at almost no interest. From what I remember there was one dip in housing prices, (2008), then they took off again!
I bought my house in 1986, average new construction then was $76K, now they are saying average new construction in the U.S. is over $300K.
When I first started looking at house's I watched the price just keep going up and up, maybe that trend will stop, but I doubt it unless something really catastrophic happens!
I also remember when the out of state people started migrating into our area, they paid inflated prices at the time for houses because they based the price on what a similar house would cost in their area, they thought they were making a good deal, they weren't, but with inflation they are well past what they paid for those homes.
No help, just something to think about, but this is what I saw!

[Bugler]

Originally Posted by Yellowfin123

looking due west of you over in johnson county, you know the area, the homes have gone up steadily over the years, never down, and not a big jump from the covid spike, they live in prairie village now where people are spending 300-400k then bulldoze for the lot

Right now prices are jumping at rates much higher than normal. Much of that was fed by the low-interest rates that folks who otherwise could not afford some homes, were in the market as well. Plus, we had record stock market profits, again fed by ultra-low interest rates. From those profits, we had more folks wanting to upgrade their homes. Combined we had too many people with too much money, competing for limited housing.

We know that the party will be cut back a bit with rate increases. The same can happen if the market takes eight months to recover from losses. Some folks may conclude they can no longer afford to keep the home or are no longer in the market to buy and upgrade. Yes, prices will settle back at some point. I remember from 2005-2009, many home prices dropped, even in luxury neighborhoods.

We do have a lot of baby boomers retiring and dying. The transfer of wealth will keep some younger folks in the market for years to come.

[Yellowfin123]

alot of great perspective and gave every post its due thought!! i appreciate it..

i guess it is a little stupid to worry about 3.6 vs 4.2 or something but will try to get both deals done by jul -aug

[Yellowfin123]

Originally Posted by Bugler

Right now prices are jumping at rates much higher than normal. Much of that was fed by the low-interest rates that folks who otherwise could not afford some homes, were in the market as well. Plus, we had record stock market profits, again fed by ultra-low interest rates. From those profits, we had more folks wanting to upgrade their homes. Combined we had too many people with too much money, competing for limited housing.

We know that the party will be cut back a bit with rate increases. The same can happen if the market takes eight months to recover from losses. Some folks may conclude they can no longer afford to keep the home or are no longer in the market to buy and upgrade. Yes, prices will settle back at some point. I remember from 2005-2009, many home prices dropped, even in luxury neighborhoods.

We do have a lot of baby boomers retiring and dying. The transfer of wealth will keep some younger folks in the market for years to come.

i watch like a hawk, seems like the general public aren't stupid, the homes i think are over priced are still for sale a month later.. the homes that i feel are a decent deal don't last 2 days

[Yellowfin123]

Originally Posted by Hot Runr Guy

For those of us who had 18% mortgages on our first homes, anything at 5% or under is "free" money. Winter is usually the cheapest time to buy, nobody wants to move their kids to different schools mid-year. Even if rates rise a bit come summer, I would expect that higher prices would offset the interest rate.

HRG

i've heard about those 18% storys if i remember right that was the early 80's

[Hot Runr Guy]

Originally Posted by Yellowfin123

i've heard about those 18% storys if i remember right that was the early 80's

Yes it was,,,,,,,,,,,,,

HRG

[cyber16]

Originally Posted by Yellowfin123

i've heard about those 18% storys if i remember right that was the early 80's

indeed, Our first house the wife and I applied for a very limited first time home buyers program that was actually minimally funded under todays standards of the same program opportunities.

It was more-so a lotto system for those that applied by the deadline...
We were winners!
The great deal was a 30yr @ 9.95%

That was a highly discounted offering

Lived there for 10 years, sold it for 2x price paid and purchased the next with cash, no mortgage
edit:
We were actually in a good spot after going into biz that we already purchased our new home prior to selling our first.
We made an offer to the listing agent, get the seller to accept our offer and you can sell our current house.
21 days later we moved in