Why Fed Rate Cuts Aren’t Making Mortgages Cheaper

[the cac mamba]

And nobody wants to pay 60K for a freaking Truck or SUV. Because auto manufacturers refuse to build anything else.

no more sedans

i dont want a fukkin 5 seat suv. what's the point

 

[richaveli83]

Mortgage rates aren't coming down because they know that trumps economic policies, tax cuts and tarrifs, will be inflationary. Have to keep the rates higher for longer to counteract that to keep inflation under control.

This normally would result in housing prices coming down, but this housing market is not normal. Inventory is still low since people who are locked into 2-4% interest rates would be stupid to sell. So the market is at a stall mate keeping prices AND mortgage rates high...for now.

I bought my house in 2021 and locked in at 3.5%. My plan was to stay in my house for about 2-3 years and buy a bigger house, but that that ain't happening as long as rates are so high.

I'm constantly getting offers to sell or refinance, but I'm like .


I'll be in this house for the foreseeable future. My house is cool, 4 bedroom, 2.5 bathroom, but it's not my forever home.

 

[JT-Money]

no more sedans

i dont want a fukkin 5 seat suv. what's the point

And the quality on the SUV is trash. And cost almost as much as a home used to cost. I know people who spent 80K on a freaking SUV.

 

[voiture]

Inventory is still low since people who are locked into 2-4% interest rates would be stupid to sell. So the market is at a stall mate keeping prices AND mortgage rates high...for now.

That's the problem...if mortgage rate stays at 6-7%, you would be an idiot to sell unless you are selling and moving out of country.

Makes no sense to go from a 2% interest rate to 6%

 

[Roger king]

Things will get worse the fed will lose whatever independence it had when trump gets into office due to political pressure, monetary policy will be base on trump whims and emotions not fact and logic and whats best for the economy

 

[DaPresident]

I bought my house in 2021 and locked in at 3.5%. My plan was to stay in my house for about 2-3 years and buy a bigger house, but that that ain't happening as long as rates are so high.

I'm constantly getting offers to sell or refinance, but I'm like .


I'll be in this house for the foreseeable future. My house is cool, 4 bedroom, 2.5 bathroom, but it's not my forever home.

I got the same rate when I refinanced in 2021.

Hell nah I ain’t selling no time soon. I see the prices and rates out here. I feel lucky to be under 4%

 

[Dave24]

I don't see prices going down anytime soon. There isn't enough supply and wages haven't kept pace with prices.

You either reduce the population or drastically increase the supply. Neither of which is gonna happen.

@JT-Money in terms of reducing the population what if bird flu becomes a pandemic and kills many people along with a major war?

 

[RiffRaff]

Mortgage rates aren't coming down because they know that trumps economic policies, tax cuts and tarrifs, will be inflationary. Have to keep the rates higher for longer to counteract that to keep inflation under control.

This normally would result in housing prices coming down, but this housing market is not normal. Inventory is still low since people who are locked into 2-4% interest rates would be stupid to sell. So the market is at a stall mate keeping prices AND mortgage rates high...for now.

Yep I think rates have to hit around the 5% mark where folks are going to be willing to part from their super low rates, that or big recession….

 

[Oatmeal]

Yep I think rates have to hit around the 5% mark where folks are going to be willing to part from their super low rates, that or big recession….

I still haven't been able to purchase a home even after increasing income, goal posts moving EVERYDAY

I think it's about to be impossible soon because all them California wildfire people about to probably be dispersed around all the LCOL & MCOL states when they get insurance payouts or the ones that don't will sell the land their house was on and buy up swaths of properties to regain wealth quickly

 

[Afro]

TO BE ANOTHER RECESSION OR PANDEMIC

Start saving brehs, that bird flu gotta knock a lot of people off.

 

[Primetime]

Yea, my father passed away several months back and I inherited his retirement/forever home in one of the very well off areas in Houston; he bought it back in 2021 at a 2.87 interest rate. 4,700 square feet, 4 beds, 4 baths… bought it for 800k but the valuation now is 1 mill+. He still had about half the original amount to pay off, so I’ve took on the mortgage.

I work overseas so I’ve hired a leasing agent to sublease the property. Ironically I just emailed her asking if we should wait to see if these wildfires will lead to a migration of wealthy folks to Texas willing to pay premium rent in top tier suburbs. At first I was gonna refinance to see if I could at least lower the mortgage but once I saw the new calculation I was like


I suppose this will be my forever/raise a family home at some point, so I figure let me at least make money off of it or pay the mortgage with the rent payments while I pay off the principal amount.

 

[RiffRaff]

I still haven't been able to purchase a home even after increasing income, goal posts moving EVERYDAY

I think it's about to be impossible soon because all them California wildfire people about to probably be dispersed around all the LCOL & MCOL states when they get insurance payouts or the ones that don't will sell the land their house was on and buy up swaths of properties to regain wealth quickly

Yep those folks definitely going to pull up to Texas and Arizona especially the middle class

 

[King Poetic]

These corporate fukks buying these homes and coming back over pricing these places