4 ms·

It’s created by unregulated investment in family housing.

dmm 3y ago
It's created by federal mortgage subsidies. If everybody's mortgage payment went up with interest rates more people would sell and drive down prices.
- nine_zeros 3y ago
  That, and property tax assessment shenanigans, and corporations buying sfhs and townhomes, and foreign investors, and tax deduction on mortgage interest, and nimby blockades on construction. A future generation will look back at this society as stupid. All the wealth of the world but cannot even give people the basics.
- nomel 3y ago
  Most everyone has fixed rates in California. 10% in 2022: https://themortgagereports.com/93472/adjustable-rate-mortgage-trends-2022 https://themortgagereports.com/93472/adjustable-rate-mortgag...
- jeezfrk 3y ago
  Fixed rate loans have existed forever. Private contracts are constantly filled with them. It's private enterprise cashing in as usual for those with the best credit. Not government intervention.
  - supertrope 3y ago
    Without Fannie Mae and Freddie Max interest rates on 30 year mortgages would be higher or everyone would have to use an ARM. On most mortgages the bank just follows these government associated agencies’ underwriting rules and immediately sells the mortgages to them.
- lotsoweiners 3y ago
  And then all of the cash buyers who are unaffected by mortgage rates would own all of the properties.
postalrat 3y ago
Unregulated investment? Is that why it costs so much to build anything? Or what exactly does it mean?
omeze 3y ago
if a house is such a good investment why arent these investors building more to mint millions ezpz?
- adammarples 3y ago
  Diluting their own market
  - Schiendelman 3y ago
    To follow your line of thought would require massive collusion between every investor to agree on how much each person builds to avoid dilution. That is so complex as to be functionally impossible. The far easier explanation is the one in the article.
    - adammarples 3y ago
      There isn't really collusion, all the developers know which side their bread is buttered on. All the major developers in the UK are the biggest Conservative party donors and they run on restricted development, nimbyism, and keeping house prices high no matter what.

dmm 3y ago

It's created by federal mortgage subsidies. If everybody's mortgage payment went up with interest rates more people would sell and drive down prices.

nine_zeros 3y ago
That, and property tax assessment shenanigans, and corporations buying sfhs and townhomes, and foreign investors, and tax deduction on mortgage interest, and nimby blockades on construction. A future generation will look back at this society as stupid. All the wealth of the world but cannot even give people the basics.
nomel 3y ago
Most everyone has fixed rates in California. 10% in 2022: https://themortgagereports.com/93472/adjustable-rate-mortgage-trends-2022 https://themortgagereports.com/93472/adjustable-rate-mortgag...
jeezfrk 3y ago
Fixed rate loans have existed forever. Private contracts are constantly filled with them. It's private enterprise cashing in as usual for those with the best credit. Not government intervention.
- supertrope 3y ago
  Without Fannie Mae and Freddie Max interest rates on 30 year mortgages would be higher or everyone would have to use an ARM. On most mortgages the bank just follows these government associated agencies’ underwriting rules and immediately sells the mortgages to them.
lotsoweiners 3y ago
And then all of the cash buyers who are unaffected by mortgage rates would own all of the properties.

postalrat 3y ago

Unregulated investment? Is that why it costs so much to build anything? Or what exactly does it mean?

omeze 3y ago

if a house is such a good investment why arent these investors building more to mint millions ezpz?

adammarples 3y ago
Diluting their own market
- Schiendelman 3y ago
  To follow your line of thought would require massive collusion between every investor to agree on how much each person builds to avoid dilution. That is so complex as to be functionally impossible. The far easier explanation is the one in the article.
  - adammarples 3y ago
    There isn't really collusion, all the developers know which side their bread is buttered on. All the major developers in the UK are the biggest Conservative party donors and they run on restricted development, nimbyism, and keeping house prices high no matter what.