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Tell me about it. I have the worst timing: started building a house in November, so I bought near the top, and then when it came time to get financing (I close

Tell me about it. I have the worst timing: started building a house in November, so I bought near the top, and then when it came time to get financing (I close next month), it's the first time that rates have risen significantly in years.

sp332 5y ago
I think we are still near the bottom on interest rates. Look again at the end of the year and see if you still think your timing was bad :)
- tomatowurst 5y ago
  you might correct with this assessment, currently the geopolitical situation of the US dollar is headed for an existential crisis as Russia-centric countries like BRICS, some european countries and Saudi are now looking to move away from pegging to USD. It's not clear whether they will succeed but should be enough of a threat that the only way to combat an attack on USD would be to raise rates significant enough on top of the pressure from inflation (nobody is buying that we have only 8% inflation, many economists are putting it at about 17%, which is absolutely unprecedented and we can no longer print money, somewhere around over half of the current USD supply was printed post 2020!!!! this is not sustainable!) Recall that in the 70s, 80s, we had double digit interest rates. 14%: The GDP was 3.2% in 1979, unemployment was 6.0%, and inflation was 11.3%. and the next year immediately: 20%!!!!: The GDP was -0.3% in 1980, unemployment was 7.2%, and inflation was 13.5%. Even through out the 90s we had 6% to 9% range with inflation at around low single digits! In fact it took from 1979 to 2002 for rates to come low to what we have had 1.25%: The GDP was 1.7% in 2002, unemployment was 6.0%, and inflation was 1.6%. The following tables have data taken from The Federal Reserve. it rose to 4, 5% again until 2008 hit and you know the rest. 0.25% !!!: In 2008, The GDP was 0.1%, unemployment was 7.3%, and inflation was 3.8%. As of Dec. 16, 2008, the target funds rate became a range, represented in the tables by the upper limit. and during those times, real estate markets struggled while booming in emerging markets.
  - mrep 5y ago
    > many economists are putting it at about 17% Source? I have not seen any place saying that besides garbage websites like shadowstats.
  - lostmsu 5y ago
    Why would they move away from USD? It would make sense if they wanted to invade nearby countries, but that is not the case.
- bdcravens 5y ago
  I agree. Still sucks to see that I'm paying $400+ by waiting just a few months lol
deleted 5y ago
[deleted]
tapatio 5y ago
I'm lucky that I can wait out building as it's not my primary, but man, the cost of construction materials is crazy right now. I feel for you.
- bdcravens 5y ago
  Yeah the house I signed a contract on in November was about 25% cheaper the previous year, though it's gone up another $20k since then (the same house in the same community)
voisin 5y ago
In the context of the last few years, sure. In the context of the last 20, 30, 40 years, these rates are still near the bottom.
- bdcravens 5y ago
  I agree. It still sucks to look and see how waiting a few months can mean a $400+ payment difference.

sp332 5y ago

I think we are still near the bottom on interest rates. Look again at the end of the year and see if you still think your timing was bad :)

tomatowurst 5y ago
you might correct with this assessment, currently the geopolitical situation of the US dollar is headed for an existential crisis as Russia-centric countries like BRICS, some european countries and Saudi are now looking to move away from pegging to USD. It's not clear whether they will succeed but should be enough of a threat that the only way to combat an attack on USD would be to raise rates significant enough on top of the pressure from inflation (nobody is buying that we have only 8% inflation, many economists are putting it at about 17%, which is absolutely unprecedented and we can no longer print money, somewhere around over half of the current USD supply was printed post 2020!!!! this is not sustainable!) Recall that in the 70s, 80s, we had double digit interest rates. 14%: The GDP was 3.2% in 1979, unemployment was 6.0%, and inflation was 11.3%. and the next year immediately: 20%!!!!: The GDP was -0.3% in 1980, unemployment was 7.2%, and inflation was 13.5%. Even through out the 90s we had 6% to 9% range with inflation at around low single digits! In fact it took from 1979 to 2002 for rates to come low to what we have had 1.25%: The GDP was 1.7% in 2002, unemployment was 6.0%, and inflation was 1.6%. The following tables have data taken from The Federal Reserve. it rose to 4, 5% again until 2008 hit and you know the rest. 0.25% !!!: In 2008, The GDP was 0.1%, unemployment was 7.3%, and inflation was 3.8%. As of Dec. 16, 2008, the target funds rate became a range, represented in the tables by the upper limit. and during those times, real estate markets struggled while booming in emerging markets.
- mrep 5y ago
  > many economists are putting it at about 17% Source? I have not seen any place saying that besides garbage websites like shadowstats.
- lostmsu 5y ago
  Why would they move away from USD? It would make sense if they wanted to invade nearby countries, but that is not the case.
bdcravens 5y ago
I agree. Still sucks to see that I'm paying $400+ by waiting just a few months lol

deleted 5y ago

[deleted]

tapatio 5y ago

I'm lucky that I can wait out building as it's not my primary, but man, the cost of construction materials is crazy right now. I feel for you.

bdcravens 5y ago
Yeah the house I signed a contract on in November was about 25% cheaper the previous year, though it's gone up another $20k since then (the same house in the same community)

voisin 5y ago

In the context of the last few years, sure. In the context of the last 20, 30, 40 years, these rates are still near the bottom.

bdcravens 5y ago
I agree. It still sucks to look and see how waiting a few months can mean a $400+ payment difference.