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The Tantone's situation really weakens this article for me, rate hikes were entirely telegraphed by Powell, and they bought during the beginning of that spree.
by latency-guy2 3y ago
The Tantone's situation really weakens this article for me, rate hikes were entirely telegraphed by Powell, and they bought during the beginning of that spree. Further, you were always going to lose money, there are very few situations in which anyone could come out better in 1.5 years into a mortgage, their plan was essentially wait at minimum 3 years (ride up, -some time passes- , then the ride down, however long this process takes) hoping for an event that has only happened once in the fed's history.
If their situation was removed, I think this would be a decent article.
- fshbbdssbbgdd 3y agoReal estate agents always have a narrative about why you should buy now. For example, if rates are rising, a good story is that other people are holding back from buying due to rising rates, therefore buyers are sitting out, there is pent-up demand. This was your last change to get in before prices explode when the fed tapers. We know this is wrong with hindsight but it was widely believed. You can’t expect people to predict the course of the bond market.
- latency-guy2 3y agoReal estate agents don't wrap your brain in a plastic bag and throw it out the window over the course of days/weeks/months into a search for what is likely to be the single largest purchase you will probably make in your entire life. Hindsight is not relevant. > You can’t expect people to predict the course of the bond market. If you can't "predict" fed fund rates, then why make predictions on the housing market? The thing that the governments both state and federal is heavily vested with. I think your reasoning is quite flawed. The Tantone's situation is one of unpreparedness and shortsighted to say the least, which as an insurance salesman looks pretty terrible.