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The majority of our mortgage market is govt guaranteed at artificially low interest rates (i.e. the US govt is taking losses on the time value of that money)- t
by jonfw 6y ago
The majority of our mortgage market is govt guaranteed at artificially low interest rates (i.e. the US govt is taking losses on the time value of that money)- that was my point.
Everybody moves up- meaning more homes being built- so you'd expect this to increase house production in the US, correct?
So, despite a disincentive for low payed laborers (like those who do construction) to go to work, the housing market will not just continue, but actually become more productive?
That $1100 a month- doesn't include home insurance, doesn't include property taxes, and assumes a $60k down payment, correct? Seems like a charitable number to pick.
- 11thEarlOfMar 6y agoArtificially low interest is not a guarantee. It's an opportunity for the time being. They are already paying rent, and if married, they get $2,000. If their rent is $600, they would have $2,000/month to save a down payment and then have $2,600 to buy a median priced home. That's enough to cover insurance and property taxes. The standard down payment is 20%, so a $226k home would be $45,200.