Wow, home mortgage interest rates have hit 6.28%!

[EyeBRollin]

Evidently, the US economy is not in the best place now, and I don’t know who’s to blame.

This part is blatantly false. You can’t have a bad economy and demand-pull inflation simultaneously. That is literally a contradiction.

 

[SW15]

Evidently, the US economy is not in the best place now

It isn't. Stock market is a mess. Mortgage rates aren't that bad historically. Rents are high. Layoffs are increasing.

 

[EyeBRollin]

It isn't. Stock market is a mess. Mortgage rates aren't that bad historically. Rents are high. Layoffs are increasing.

More contradictions. Mortgage rates and rents are high because of demand pull inflation, which is impossible for a bad economy.

 

[BackInTheGame78]

They are high in comparison to what they were the last few years but historically these rates are still very low.

 

[SW15]

More contradictions. Mortgage rates and rents are high because of demand pull inflation, which is impossible for a bad economy.

Where were you during the 1970s era of stagflation? Stagnant economy + high inflation.

Stagflation: Causes And When It Will Come

The Federal Reserve affects employment before it affects inflation. In between, employment is slowing but inflation is not yet coming down.

www.forbes.com

I am more concerned about the mess in the stock market than I am about the mortgage rates.

 

[EyeBRollin]

Where were you during the 1970s era of stagflation? Stagnant economy + high inflation.

Stagflation: Causes And When It Will Come

The Federal Reserve affects employment before it affects inflation. In between, employment is slowing but inflation is not yet coming down.

www.forbes.com

I am more concerned about the mess in the stock market than I am about the mortgage rates.

This is not the 1970s. It is 2022. Less than a year removed from a global pandemic.

 

[SW15]

Right now, we have a stock market that is in free fall and rising mortgage rates. Rental rates have been high. There is some evidence that demand for owned-housing is decreasing as sellers are desperate and cutting prices.

 

[Bingo-Player]

Thanks to poor policy decisions made during the pandemic.

Isn't it strange many of the western superpowers made exactly the same poor decisions

 

[EyeBRollin]

Right now, we have a stock market that is in free fall and rising mortgage rates. Rental rates have been high. There is some evidence that demand for owned-housing is decreasing as sellers are desperate and cutting prices.

There is evidence that peoples’ view of the economy is almost always based on how they feel about the current President, not on the current economic realities.

You can’t have both a bad economy and demand-pull inflation at the same time. That is a contradiction. So which is it?

 

[SW15]

You can’t have both a bad economy and demand-pull inflation at the same time. That is a contradiction. So which is it?

You say that but offer zero proof.

There is a recession. GDP is falling. The stock market is in free fall. There is inflation.

https://www.cnn.com/2022/09/29/business/us-gdp-q2-final/index.html

Current US Inflation Rates: 2000-2022 | US Inflation Calculator

The annual inflation rate for the United States is 8.3% for the 12 months ended August 2022 after rising 8.5% previously, according to U.S. Labor Department data published Sept. 13. The next inflation update is scheduled for release on Oct. 13 at 8:30 a.m. ET. It will offer the rate of inflation...

www.usinflationcalculator.com

.

The stock market isn't as future indicating as some like to believe. GDP was already falling in January-March 2022 when the stock market was beginning its free fall.

 

[josesfeir]

I was looking into mortgages, too, and these high rates are hard to deal with. It's even more challenging if your credit isn't great because the rates increase.

I got personal loans for things I needed around the house. I used an app that made it easy to borrow money—just a few taps on my phone and no long forms to fill out. The process was quick; they had different kinds of loans to choose from and were clear about the interest and everything. It helped me out a lot. If you need a loan, here's the app: https://apps.apple.com/us/app/payday-advance-online-loans/id1661084874.

 

[Pierce Manhammer]

Gentlemen, my first home mortage in 1991 or so was 14.75% and stayed that way for years. I love how people say Gen X and boomers had it easier...

The best thing back then was that it kept you in homes you could actually afford, even when the economy turned south.

https://money.usnews.com/loans/mortgages/articles/historical-mortgage-rates

 

[RickTheToad]

PenFed has 5.75%. One can house hack and get a duplex. Live in one, have a tenant in the second one and have them help pay part of the mortgage. When you are ready, you can turn that unit that you are living in as a rental (or sell) and move somewhere else. Rinse and repeat.

 

[Scaramouche]

As have I. I've been reading about the plans of the Global Elite for nearly two decades. With hindsight, you can see there plans coming to fruition. I don't believe anything that the mainstream media says, in fact, often if they go with a certain narrative, then I often believe that the opposite to be true.

It's like we are through the Looking Glass Alice, and have entered Wonderland... although it ain't that wonderful...

Hi Darwin,
About 1984 I was buying four houses on a variable interest only loan from CBC one payment was at 22% interest!!!....That's a fifth of the value in one year...To avoid bankruptcy I had to sacrifice one freestanding Cottage for a lousy $45 Grand!

 

[Scaramouche]

In the scheme of things, that is nothing. During 1990, the last great Recession in Australia, Mortgage rates reached 17%!

I was 13 at the time, I didn't have a true grasp of what was going on, but I do recall seeing news footage of thousands of people lined down the block, hoping for success in a job interview that was for only a couple of positions. Horrible stuff.

I'm just glad during that time, my parents fully owned the family home, and had no outstanding debt.

https://www.ratecity.com.au/home-loans/mortgage-news/28-years-since-rates-17-per-cent-better-off

Hi Darwin,
To be fair,there were in the late 60's incredible opportunities in Darwin....Can you believe I purchased a home,in Charles St,Stuart Park from the NTA for $4.200,and they loaned me the Mazooma to buy it at 4.75%on10% deposit?

 

[EyeBRollin]

When Trump was in office in 2018 I got my first house at 3.1% in SC, and in 2019 when I moved to TX I got my second house at 2.75% interest, coincidence? Don't think so.

Exhibit A of confirmation bias. Interest rates were historically low throughout the entire 2010s decade.

 

[EyeBRollin]

I know right, but then came Pandemic, closing all the blue states, everyone fleeing those states to red states, housing marke prices through the roof, then interest rate through the roof. Good riddance.

Do you own a house in NY?

That’s your narrative, huh?

Reality is simpler; supply and demand. When the whole world shuts down for 3 years, what happens to the production, thus supply of goods? If the supply were to hypothetically decrease, what would happen to the cost of things?

I bought my house in Jersey in 2016. With a 3.5% interest rate. Value has since doubled. If everyone hates it here and is leaving why do houses sell within hours of listing?

 

[EyeBRollin]

That's the truth of what happened.

Where in Jersey? Cause I wouldn't want to live in Trenton even if the house is for free, fvckin $hithole.

I’m in the northern half of the state. Not in Trenton. If you want a nice house here in a good neighborhood, it will cost $800K minimum.

Wife and I looked at a duplex a few months ago. It was listed at $650K. First day it had multiple cash offers. Closed within a week for over $700K.

Now Newark, NJ is similar of a shvt hole to Trenton. Even houses there are $500K and up.

 

[EyeBRollin]

How the fvck can people pay that amount? Thats one of the reasons the massive move.

What's the average salary there? My house is 2k sqft, 4bd 2 br and the cost was in 2019, $250k in a nice neighborhood.

4 bd house in northern NJ is $600K in a mediocre neighborhood, $800K+ in a nice neighborhood.

The salaries are high due to NYC pay scales. Median household income in the state is almost $80K and that is brought down by South Jersey. With no education you can find work for $20 / hour. Minimum wage is $15 / hour.

Our entry level associates in NYC, fresh out of college start at $70-80K.