5 ms·

If you don't, then the prices won't be pushed as fast as they would outside of that. Low rates==home price rise.

lolinder 3y ago
Can confirm. We bought during the minimum rates, and the competition for housing was absolutely insane.
Workaccount2 3y ago
Except that in areas where people actually live, higher rates haven't done much to lower those "low rate" prices. There is an insane supply problem and the fed's hand in the mortgage market doesn't make anything better. It's sensible for mortgages to all be ARMs, then rates will actually have a very real and unavoidable impact on home values. We are now going to be stuck with this before covid and after covid homeowner situation. People who bought prior to 2022, and especially prior to 2020 will be death gripping their 2% mortgage, to the point that you could basically write off that parcel of land as even existing for the next 20-25 years.
- zpeti 3y ago
  That takes years to play out. Also, except for Miami every major city has had price decreases, so your personal anecdote is not what the stats show. And in fact, at 10% inflation, if prices don’t rise, that means they are getting 10% cheaper in real terms. So in fact prices definitely are falling, no city has had a 10% price rise in the last 12-18 months.
  - Workaccount2 3y ago
    "Haven't done much" refers to reversing the price increases seen during low rates. Prices ran 20-30% in major markets and now getting pull backs of a few percent, mostly on the back of totally choked supply. Raise rates all you want, if there aren't houses being put on the market, it's not going to do shit.
    - zpeti 3y ago
      There are plenty of houses being put on the market, just not in super trendy blue metropolitan areas.
      - nebula8804 3y ago
        by living in the hood or in MAGA country you are paying the same price, its just taken out of your wealth in different ways. The market is pricing things appropriately.
        zpeti 3y ago
        Spoken like a true liberal elite.
        nebula8804 3y ago
        There is something that is scaring people away from living in those areas. the market does not care about your political views. You can deny reality all you want.
    - deleted 3y ago
      [deleted]
andy_ppp 3y ago
You can expect house prices to continue to rise given the money printing and where it ended up during COVID. A lot of rich people need somewhere to put their increases in wealth post COVID, my guess is a boom for about 2-3 years before big problems and they might not need the size of mortgage to get a decent return that the interest rate matters all that much.
bluefishinit 3y ago
You can get much less house for the same monthly mortgage payment now then you could before rates went up. The small decline in home prices doesn't offset the much higher monthly payment you have to pay now. People are constrained by how much they can afford to pay every month, not the overall amount they have to borrow.

Can confirm. We bought during the minimum rates, and the competition for housing was absolutely insane.

Except that in areas where people actually live, higher rates haven't done much to lower those "low rate" prices. There is an insane supply problem and the fed's hand in the mortgage market doesn't make anything better. It's sensible for mortgages to all be ARMs, then rates will actually have a very real and unavoidable impact on home values. We are now going to be stuck with this before covid and after covid homeowner situation. People who bought prior to 2022, and especially prior to 2020 will be death gripping their 2% mortgage, to the point that you could basically write off that parcel of land as even existing for the next 20-25 years.

zpeti 3y ago
That takes years to play out. Also, except for Miami every major city has had price decreases, so your personal anecdote is not what the stats show. And in fact, at 10% inflation, if prices don’t rise, that means they are getting 10% cheaper in real terms. So in fact prices definitely are falling, no city has had a 10% price rise in the last 12-18 months.
- Workaccount2 3y ago
  "Haven't done much" refers to reversing the price increases seen during low rates. Prices ran 20-30% in major markets and now getting pull backs of a few percent, mostly on the back of totally choked supply. Raise rates all you want, if there aren't houses being put on the market, it's not going to do shit.
  - zpeti 3y ago
    There are plenty of houses being put on the market, just not in super trendy blue metropolitan areas.
    - nebula8804 3y ago
      by living in the hood or in MAGA country you are paying the same price, its just taken out of your wealth in different ways. The market is pricing things appropriately.
      - zpeti 3y ago
        Spoken like a true liberal elite.
        nebula8804 3y ago
        There is something that is scaring people away from living in those areas. the market does not care about your political views. You can deny reality all you want.
  - deleted 3y ago
    [deleted]

andy_ppp 3y ago

You can expect house prices to continue to rise given the money printing and where it ended up during COVID. A lot of rich people need somewhere to put their increases in wealth post COVID, my guess is a boom for about 2-3 years before big problems and they might not need the size of mortgage to get a decent return that the interest rate matters all that much.

bluefishinit 3y ago

You can get much less house for the same monthly mortgage payment now then you could before rates went up. The small decline in home prices doesn't offset the much higher monthly payment you have to pay now. People are constrained by how much they can afford to pay every month, not the overall amount they have to borrow.