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>Lenders were granting loans last year for 5% down at below 3% interest and prices went up accordingly. Homes were more affordable than ever from the perspectiv
by treis 5y ago
>Lenders were granting loans last year for 5% down at below 3% interest and prices went up accordingly. Homes were more affordable than ever from the perspective of the cost of a mortgage per dollar. They became unaffordable due to the surge in demand because money was so cheap
I had to scroll distressingly far to see this post. The record set was going from ~13% investor bought to ~15%. It's a marginal change. Prices sky rocketed because, as you noted, (1) it was/is one of the best financial environments for home buying ever and (2) Covid accelerated timelines for home buying.
- duped 5y agoI think the point I'd like to harp on is that money was extremely cheap last year and it was the best time to buy a home - if you had the savings for a downpayment, that 30 year fixed rate mortgage was cheaper than rent! The problem is that half of Americans don't have more than a thousand dollars in the bank, and we need to focus less on the sheer cost of homes (when homes were incredibly affordable) and more on why Americans can't save for down payments.