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Mortgage Rates Could Tank Home Prices by 20%, Fed Study Finds
- rogerkirkness 4y agoThe theoretical minimum for the housing market is 80% off peak, because the median down payment is 20%. Where I live houses are already down over 20% and variable rate mortgage triggers are just starting to fire. I could see us approaching more like 40-50% off peak if the FED/BOC/BOE continue to hike.
- deleted 4y ago[deleted]
- newaccount2021 4y ago
- jdhn 4y agoI'm not entirely convinced that the Fed will finish its rate hiking program. You have multiple members of the Fed jawboning about lowering the size of the hikes (Brainard comes to mind), and there's no way in hell politicians will let another 2008 real estate crisis happen again.
- more_corn 4y agoInterest rates will keep going up till inflation comes back down. The inflation rate seems to be on the way back down. The slowing of demand and the unkinking of the supply chain seem to be having a positive effect.
- gausswho 4y agoThe market going giddy over the slight slowdown of inflation is suspect, due to a change in how medical costs are measured. Without that change inflation would officially still be rising. https://wolfstreet.com/2022/11/10/services-inflation-spiked-to-second-highest-in-4-decades-would-have-hit-new-high-if-not-slowed-by-biggest-ever-adjustment-of-health-insurance-cpi/ https://wolfstreet.com/2022/11/10/services-inflation-spiked-...
- more_corn 4y agoGood? With the prices still high and interest up it’s the worst time to buy a house in decades. A price dip would do first time home buyers a lot of good.
- throwaway5959 4y agoYup. I’m getting a lot of pressure from my wife to buy as we’re getting closer to having a downpayment ready but the prices coming down are convincing her it’s worth it to wait.