4 ms·
I bought into a new community this year. When I signed late last year, most of the street was sold before the foundations were poured. They're now building the
by bdcravens 4y ago
I bought into a new community this year. When I signed late last year, most of the street was sold before the foundations were poured.
They're now building the next section, a few blocks away. Many of those houses are approaching completion and are still for sale.
- deleted 4y ago[deleted]
- fy20 4y agoAs I understand this is mostly because mortgages in the US are usually 30 year fixed rate. Why buy a house today with 6%+ interest, when in the past couple of years, although prices were higher, you could have got a mortgage with 3% or even 2%? Plus everyone is expecting a crash, nobody wants to be the sucker who bought at the peak in 2007, better to wait it out and see. In Europe it's the opposite where almost all mortgages track the 6 month Euribor (or equivalent central bank rate). In my country the maximum fixed term you can get is 5 years, after which it reverts back to variable rate. I'm in the process of buying a house now, and although prices may drop a little and the interest rate may get higher in the short term, in the grand scheme of things that doesn't really affect it much - the monthly payments on a mortgage are still much cheaper than what you would pay to rent.
- patch_cable 4y agoEven with a 30 year mortgage, you can refinance (take out a new mortgage and pay the old one off early) at any point. So even if you take out a mortgage with a 6% interest rate, you’re not stuck with it if the rates go down.
- bdcravens 4y agoThe US does have mortgages like you described (called a 5/1 ARM), but they're typically advised against since lower-risk options exist.
- insane_dreamer 4y agoThis can be largely explained by the increase in mortgage rates.