/biz/ - Business & Finance

>>53379833
>Who cares where the mortgage rates are

you literally explained why it matters where rates are later in your post you fucking retard

>>53376519
thank you for renting

>>53048624
Because home prices are still reasonable given the lending market. The last time rates were 6% was 2008. Median household income in 2008 was 50k. Median household income now is 70k. +40%.

Then in 2017, lending requirements changed. Fannie Mae allowed the DTI ratios to be raised to 50%. Early 2010s the ratio was a maximum of 36% because banks got BTFO by lending too much to niggers who didn't pay their bills. Now people who are putting 20% down with good credit can get 50% DTI as salaries are higher and risk is lower. +40%.

Homes should be up 80% just based on those factors from 2008 prices. Median home price in 2008 was 200k. Now it's 370k. 85% higher.

Housing has dipped, we're down 10% due to higher rates. It would have to dip an additional 20% to match the 2011 crash, and the economy isn't anywhere near as bad as the GFC. Incomes are up 40% since then, loan qualification amounts are up an additional 40%. If you take the 2011 lows and adjust for income and loan qualification requirements today, you get 300k, which is equivalent to an additional 20% dip.

It's also a completely different economy. Everyone who had a mortgage prior to 2008 was sitting on rates above 5%. Now you have a bunch of people sitting on 3% mortgages. There is no incentive to sell when you'll have to buy in again at a higher rate. We also are coming off a 10 year bull market where people earned a bunch of income off investments.

>>52537368
>goes through 6 months of housing prices going down because high rates make homes unaffordable
>still believes that salaries are what cause home prices to go up or down

I fucking love how braindead most of the people here are, it's so easy to profit off of you dumb fucks.

Rent is due in a week.

>>51100061
Home ownership is just as obtainable now as it was for your father, and your interest rates are a fraction of what he got from the bank.

>>51024913
>Rates go up from 2.75% to 5.25%
>Home prices are "down" 10%

They should be down 25% given that people have 75% of the purchasing power they had last year.

>>51006279
It's almost as if 5-6% mortgage rates mean that buyers qualify for less and can afford less.

Housing has always been tied to income and interest rates. People aren't making less money than they were last year. There are still more jobs than people who want to work for the advertised salaries.

Rates aren't going to stay above 5% long term. The Fed is just putting a temporary pause to their Ponzi scheme. They've already been declining the past 2 months.

You buy when rates are high and refinance when rates are low. If you wait to buy when rates are sub-4% then you'll be competing with 5 other offers for every property.

>>50479605
>were things really that easy for you when you were our age, boomer?

I'm 35.

>nuclear wasteland job market

I was in that 2008-09 job market when I graduated college. Got hired for 45k/year out of college because I didn't major in something worthless (Mathematics).

>houses are 500k

Homes were 130k in 2011. They were affordable until 6 months ago. Rates were 2.5% last year. You can still buy now with $0 down at 3%. Just get a USDA loan.

>there are thousands of people who graduate college and start to live in their car
>they can't find a job

They're losers. Imagine not being able to find work in this economy.

>>50064762
No grocery bagger was buying a home in 1990 with 10% interest rates.

Home prices are no different now than they were in the 90s when you take into account interest rates (although this chart probably needs updating for the exponential rise the past 6 months).

Hopefully you figure out that you're the problem, not Boomers/Immigrants, before it's too late.