How are mortgage interest rates already back to 4%?

[winb83]

I remember the Fed cut the fund rate to basically nothing and interest rates fell to the 2% range. The prices of homes skyrocketed as a result. The prices of homes are still sky high and the interest rates are now high too. The Fed hasn't actually even raised rates yet.

 

[MasterOfAllHeSurveyz]

I remember the Fed cut the fund rate to basically nothing and interest rates fell to the 2% range. The prices of homes skyrocketed as a result. The prices of homes are still sky high and the interest rates are now high too. The Fed hasn't actually even raised rates yet.

That's not why. There's an inventory problem. There're not enough homes being built.





This guy (https://www.youtube.com/user/MrAlanKendall) has predicted all of this stuff over a decade ago. Dude even hit the bottom of the real estate market on the nose after the Great Recession.

This is a twelve-year-old vid. He just changes the year on it every year.

 

[Ed MOTHEREFFING G]

That's not why. There's an inventory problem. There're not enough homes being built.





This guy (https://www.youtube.com/user/MrAlanKendall) has predicted all of this stuff over a decade ago. Dude even hit the bottom of the real estate market on the nose after the Great Recession.

This is a twelve-year-old vid. He just changes the year on it every year.

Home inventory is not correlated to the index rate of borrowing.

 

[cyndaquil]

I remember the Fed cut the fund rate to basically nothing and interest rates fell to the 2% range. The prices of homes skyrocketed as a result. The prices of homes are still sky high and the interest rates are now high too. The Fed hasn't actually even raised rates yet.

They were raised in anticipation of a rate hike.
Home prices will drop a bit after.

 

[MasterOfAllHeSurveyz]

Home inventory is not correlated to the index rate of borrowing.

Who said it was? The OP thought the rising cost of housing was caused by the lowering of interest rates. That's simply not true. He was asking why with rising interest rates, why the price of homes are still sky high and climbing.

 

[Ed MOTHEREFFING G]

Who said it was? The OP thought the rising cost of housing was caused by the lowering of interest rates. That's simply not true. He was asking why with rising interest rates, why the price of homes are still sky high and climbing.

I missed the connection between op and your reply, my apologies

 

[Houston911]

That's not why. There's an inventory problem. There're not enough homes being built.





This guy (https://www.youtube.com/user/MrAlanKendall) has predicted all of this stuff over a decade ago. Dude even hit the bottom of the real estate market on the nose after the Great Recession.

This is a twelve-year-old vid. He just changes the year on it every year.

alan Kendall is good

 

[Orange cream shake]

They were raised in anticipation of a rate hike.
Home prices will drop a bit after.

Not necessarily. This will depend on your market. Where I live prices are still steady and sill continue to be that way or go up until there is more supply. Low supply is the reason prices of homes are up. Rates are playing a very small role considering people are paying cash.

 

[The_Sheff]

4% is not a high rate. Average rates used to be 7-12%. This whole free money phenomenon is relatively new.

 

[beenz]

4%????

these shyts are already above 5% now and headed to 6% I'm thinking

 

[beenz]

4% is not a high rate. Average rates used to be 7-12%. This whole free money phenomenon is relatively new.

high interest rates and home prices are usually inversely related. so if interest rates go very high, housing prices should drop quite a bit.

30-Year Fixed-Rate Mortgages Since 1971

 

[CrimsonTider]

Dumb thread

 

[Spence]

fed is trying to restrict buying by raising rates so it prices lower end people out of the market so they won’t/can’t borrow.

 

[trapnerd]

High interest rates don't matter to corporations who are buying whole blocks in cash.

Just fukks over the people who have been struggling trying to purchase something.

 

[Arithmetic]

Markets are forward-looking