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Interesting. Do you know if mortgage rates in those states are higher, to compensate lenders for the increased risk?
by trogdor 2y ago
Interesting. Do you know if mortgage rates in those states are higher, to compensate lenders for the increased risk?
- dmoy 2y agoI think it matters a lot more for commercial mortgages. In any event, it's like 20-30bps or less according to the Fed. So higher, but not that much higher even for commercial mortgages, and even less for residential where there's a lot more federal protection going on. The bigger impact, I believe, is that housing prices can go more crazy. People will take more risk if they know they can walk and leave the bank holding the bag, so there isn't that limiting factor on prices. (Though I suspect, but obviously can't confirm, that the effect from non-recourse mortgage is absolutely dwarfed by other factors, especially out here on the west coast where we have very restrictive zoning policies, weaponized environmental policies inside urban areas, etc)
- mikestew 2y agoWA resident: our mortgage is 2.5% from the credit union. I've not noticed that current rates are any worse than other states I've checked. OTOH, in 25 years of living here, I've never seen house prices go down, only stay steady.
- jp191919 2y agoHome prices definitely went down during the great recession.
- AstralStorm 2y agoSo did the wages, and those went down more. If you lost a job during that time, you're pretty screwed.