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In my peer group people are focusing on the monthly payments, rather than the loan amount. And mortgage rates are like half what they were in the last housing b
by sct202 6y ago
In my peer group people are focusing on the monthly payments, rather than the loan amount. And mortgage rates are like half what they were in the last housing bubble https://fred.stlouisfed.org/series/MORTGAGE30US https://fred.stlouisfed.org/series/MORTGAGE30US
- nerdponx 6y agoMy peer group is probably a bit younger, and they/I are all renting or are relatively new homeowners. The "sticker price" on houses matters to my group a lot, as does monthly rent. I'd love to find a FRED-like data source for median rental rates over time and/or an index thereof. I suspect that rents are generally correlated with sale prices on a multi-year time scale.
- banannaise 6y agoThe market rent has a direct influence on the value of a home - it's one of the standard home appraisal methods.
- JMTQp8lwXL 6y agoLeaving them with no room to refinance in future, since rates practically cannot drop further for mortgage lending to be viable. People taking loans in 2021 sure better hope for the continued devaluation of the dollar. It's the only way to keep the debt burden manageable.
- SomewhatLikely 6y agoSerious question: why would they care about refinancing if their rate is low? Regarding dollar devaluation: I don't there there has been a single year since we abandoned the gold standard where the dollar didn't devalue. And the Fed has explicitly okayed higher inflation going forward.
- nerdponx 6y agoIf they didn't care about refinancing they wouldn't care about mortgage rates.