5 ms·

A $300,000 mortgage without taxes & fees: - On this day in 2021: $1,242/month - Today: $1,818/month - After two more rate hikes: $2,160/month And looking

A $300,000 mortgage without taxes & fees: - On this day in 2021: $1,242/month - Today: $1,818/month - After two more rate hikes: $2,160/month And looking at it from the other side. If your budget for a house (no T&F) was $1,300/month you could afford: - On this day in 2021: $300,000 house - Today: $210,000 - After two more rate hikes: $180,000 ...what's going to happen when people who bought a house during the last 12-18 months need to move? Home prices haven't appreciated enough to offset the dramatic reduction in purchasing power, and rate hikes are dampening demand which will eventually put downward pressure on prices. This is going to be a disaster.

ladyattis 4y ago
This makes me happy that I didn't try to buy a house despite the rents going up in my area. I'm in an apartment so this isn't a big issue but it's still significant. In 2015, my apartment rent was 680/mo. Last month, the rent was 965/mo. I've moved into a renovated apartment in the same complex which moved me up to 1015/mo. So, I've seen some major jumps in the last few years there but it seems they're minor compared to the current changes happening for home owners. Edit: Also, I don't pay for water, heat, or trash, so these prices with that in mind are a bargain in my opinion but for anyone else that isn't making my salary or similar it's still a pain.
- insane_dreamer 4y ago
  $680 -> $1015 is not minor in terms of percentage increase
- parkingrift 4y ago
  You only "lose" in this scenario if you bought a year ago and need to sell now or sometime in the next 12-18+ months. Even if you're underwater temporarily it won't matter unless you need to sell.
smileysteve 4y ago
> what's going to happen when people who bought a house during the last 12-18 months need to move? They'll maybe need to rent out their houses instead selling; which might include them finding a smaller temporary housing. But this should be a minimum exception of people, right? Sure, relative to the quick flips, 7 years is a long time, but the majority bought to stay, right?

ladyattis 4y ago

This makes me happy that I didn't try to buy a house despite the rents going up in my area. I'm in an apartment so this isn't a big issue but it's still significant. In 2015, my apartment rent was 680/mo. Last month, the rent was 965/mo. I've moved into a renovated apartment in the same complex which moved me up to 1015/mo. So, I've seen some major jumps in the last few years there but it seems they're minor compared to the current changes happening for home owners. Edit: Also, I don't pay for water, heat, or trash, so these prices with that in mind are a bargain in my opinion but for anyone else that isn't making my salary or similar it's still a pain.

insane_dreamer 4y ago
$680 -> $1015 is not minor in terms of percentage increase
parkingrift 4y ago
You only "lose" in this scenario if you bought a year ago and need to sell now or sometime in the next 12-18+ months. Even if you're underwater temporarily it won't matter unless you need to sell.

smileysteve 4y ago

> what's going to happen when people who bought a house during the last 12-18 months need to move? They'll maybe need to rent out their houses instead selling; which might include them finding a smaller temporary housing. But this should be a minimum exception of people, right? Sure, relative to the quick flips, 7 years is a long time, but the majority bought to stay, right?