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There are 3 good replies to this one giving a decent analysis for why I might want to reconsider my position. It's hard to pick which one to answer to. Would y

There are 3 good replies to this one giving a decent analysis for why I might want to reconsider my position. It's hard to pick which one to answer to. Would you say that mortgage is probably driven down 8% because just can't afford the down payment anymore, or people like me who seem to have an irrational aversion to it?

ilikehurdles 4y ago
Is 8% referring to Rocket Mortgage layoffs? Over the last two or so years, mortgage rates hit historic lows, which meant the demand for cheap mortgages increased significantly, both from people wanting to enter the market and those refinancing. Consider that the $500k mortgage that would have cost $2300/mo in 2019 suddenly costs like $1600/mo in 2021. Absolutely I jumped on that train, as many others did. Lenders were overwhelmed and had to hire a lot to meet this demand. If you missed that window, well rates are above what they were pre-pandemic, looking back at least a decade, so refinancing for lower payments no longer makes sense for most borrowers. People still are buying homes, but high prices and that disappeared “once-in-a-lifetime deal” are going to suppress demand.
- JetAlone 4y ago
  It wasn't the right time to buy for me, for a handful of reasons, got no resentfulness over it. I don't know what my local market is like, or is going to be like.
  - bombcar 4y ago
    The "right time to buy" is way more important based on your personal circumstances than almost any other consideration. Until you're sure you want to be in the same area for 10+ years, I wouldn't even bother considering buying, let alone determining which house you want to live in for 10+ years. Which is why you often see houses being purchased by new families, the kids are the first thing that really begins to put down roots (as you don't want to move them from their school/friends).

ilikehurdles 4y ago

Is 8% referring to Rocket Mortgage layoffs? Over the last two or so years, mortgage rates hit historic lows, which meant the demand for cheap mortgages increased significantly, both from people wanting to enter the market and those refinancing. Consider that the $500k mortgage that would have cost $2300/mo in 2019 suddenly costs like $1600/mo in 2021. Absolutely I jumped on that train, as many others did. Lenders were overwhelmed and had to hire a lot to meet this demand. If you missed that window, well rates are above what they were pre-pandemic, looking back at least a decade, so refinancing for lower payments no longer makes sense for most borrowers. People still are buying homes, but high prices and that disappeared “once-in-a-lifetime deal” are going to suppress demand.

JetAlone 4y ago
It wasn't the right time to buy for me, for a handful of reasons, got no resentfulness over it. I don't know what my local market is like, or is going to be like.
- bombcar 4y ago
  The "right time to buy" is way more important based on your personal circumstances than almost any other consideration. Until you're sure you want to be in the same area for 10+ years, I wouldn't even bother considering buying, let alone determining which house you want to live in for 10+ years. Which is why you often see houses being purchased by new families, the kids are the first thing that really begins to put down roots (as you don't want to move them from their school/friends).