Mortgage Rates Hit 6.92%, the Highest in 20 Years

[candyx]

Everything cost more so man up and open your wallets, liberal polices aren't cheap especially if all your children will need gender reassignment surgeries because they are confused about their gender. First jumped in to homes in 1980's at 18% mortgage and construction loan rates. I guess if you purchased your home with a credit card today you could have that same experience of high rates.

 

[Hobo Hilton]

The red-hot rental market is finally starting to cool off along with the rest of housing.
Rents are still higher than they were a year ago, but the gains are shrinking, as landlords lose pricing power in the face of inflation.
Rents in October rose 4.7% compared with October 2021, the slowest annual increase in 18 months, according to Realtor.com. The U.S. median rent was $1,734.
_____________________________
Take this as a positive sign to buy that house. Some land lords will be ready to sell off some of their rental properties now that the market has possibly peaked.
Lower your expectations, scrap up a sizeable down payment and beat the bushes for a property. Dealing with a realtor would be my last option. Start to "Farm" the area where you want to buy. Get to know people who are moving to assisted living, downsizing, dying or relocating for a job.... Save yourself (and the seller) the 6% that a realtor charges....
You can own a house for less than $1,734 a month.

Rent growth slows to the lowest level in 18 months

Rents in October rose 4.7% compared with October 2021, the slowest annual increase in 18 months, according to Realtor.com.

www.cnbc.com

 

[Hobo Hilton]

Home buyers... Don't let the headline scare you..... Cash is King...
Cash in hand is going to off set what your income needs to be according to the mysterious formula the mortgage broker uses.
Swallow your pride and start asking relatives, friends and "other's" for some cash.
Consider anyone giving or "loaning" you cash can be put on the deed.... That is a surety to them but keeps them at a distance from your day to day dealings.
There will be no deals... It's going to simply be a fair price for a fair house.
Eat Top Ramen and sleep on the floor.

Buyers need a six-figure income to afford a 'typical' home, report finds. Here's how to reduce the cost

In October, home buyers needed to earn $107,281 to afford the median monthly mortgage payment for a "typical home." Here's how to reduce the cost.

www.cnbc.com

 

[lariat]

Eat Top Ramen and sleep on the floor.

Buyers need a six-figure income to afford a 'typical' home, report finds. Here's how to reduce the cost

In October, home buyers needed to earn $107,281 to afford the median monthly mortgage payment for a "typical home." Here's how to reduce the cost.

www.cnbc.com

This. But most people dont want to "suffer" to get the prize. And that is the problem of personal weakness.

 

[Hobo Hilton]

This. But most people dont want to "suffer" to get the prize. And that is the problem of personal weakness.

Like everything else here in America.... There is 3% that will put their shoulder to the wheel, swallow their pride, work their ass off, carry an old 3G Flip Phone instead of an IPhone , work the graveyard shift because it pays 10% more, drive a 20 year old beater, not stop for a $6 Starbuck's every morning, sell off the Safe Queens (Hank Jr = Shotgun, Rifle and a 4 wheel drive).....
And, if you are totally blessed you will have a wife or girlfriend who will pitch in during the hard times to get there............ Put those girl's name on the deed, also. You will be much better off to own 1/2 or 1/4 of a house than to be a "renter" for the rest of your life.

 

[Hobo Hilton]

I'll throw this listing out for discussion. It's not too far from my homestead. Link below :
Get things in perspective... In my state the average selling price is almost $500K
Yep, this one needs a lot of TLC. Read the fine print.. The sewer system is installed and county approved (That is a big deal, here). Sits on 1 acre.
Gather $170,000 cash and finance $170,000 .... Your monthly payment will be $1177 / month....
Pull up your big girl panties... Roll up your sleeves... This is the world today. It will not get better.

4014 Illinois Bench Rd, Stevensville, MT 59870 | Zillow

4014 Illinois Bench Rd, Stevensville MT, is a Single Family home that contains 1200 sq ft and was built in 1980.It contains 3 bedrooms and 2 bathrooms. The Zestimate for this Single Family is $301,700, which has increased by $4,700 in the last 30 days.The Rent Zestimate for this Single Family...

www.zillow.com

 

[Hobo Hilton]

Could be good news for some. Regional, of course.

October data from Redfin indicated that rent prices in the U.S. dropped for the second straight month, falling below $2,000 a month for the first time since April.

National rent prices declined, rents cheaper in 11 cities compared to 2021

Overall, rent prices are up 7.8% in the last year. In March, Redfin reported a year-over-year increase of 17.5%

www.kpax.com

 

[sirhrmechanic]

So… rent is cheaper than owning. Cash buyers like Blackrock keep buying houses that folks who need mortgages are priced out of. And now they will rent them to you.

As long as your social credit score measures up….

You will own nothing and be happy…. Especially not a house.

Sirhr

 

[Bigfatcock]

So… rent is cheaper than owning. Cash buyers like Blackrock keep buying houses that folks who need mortgages are priced out of. And now they will rent them to you.

As long as your social credit score measures up….

You will own nothing and be happy…. Especially not a house.

Sirhr

Eat ze bugz!!

 

[Earnhardt]

Yep, and I've got a shopping list. There should be some deals to be had while everyone else is worried about being $250k upside down on their house and $40k on their new truck. I was way too conservative in 2009-'10, and do not intend to repeat that mistake.

This!… I think back of the opportunities on cheap housing from 2009-2010…it makes me sick for not buying a couple more homes on the cheap

 

[Bigfatcock]

I don’t think we’ll see the same housing drop as we saw during 2008.

 

[Lightning8]

I don’t think we’ll see the same housing drop as we saw during 2008.

One difference is the volume of homes purchased last decade or so by big investment houses. Will they be able to sell/rent to make profits or - if not - will they start dumping at a loss?

 

[Bigfatcock]

One difference is the volume of homes purchased last decade or so by big investment houses. Will they be able to sell/rent to make profits or - if not - will they start dumping at a loss?

I don’t believe the big buyers came in with flipping. I think they want rent in perpetuity.

 

[Zuul]

I don’t think we’ll see the same housing drop as we saw during 2008.

I think your spot on if the job market stays strong, prices will level out but we won’t see the drops like after 2008. If we get mass layoffs and company closures then it’s going to be a roller coaster ride down. Massive credit card debt, huge car payments, and that new house that was over paid for that just lost 30% of its “value”, oh shit, here we go again!!!

 

[clcustom1911]

At some point, probably early next year, Fed will have start backing down the rates in order to avoid full blown recession. It’s actually necessary now. One cannot print trillions of dollars to hand out for votes and advance a social agenda without consequences.

Yes they can because the consequences are what they want.

 

[lash]

Yes they can because the consequences are what they want.

You’re not wrong

 

[Hobo Hilton]

I don’t believe the big buyers came in with flipping. I think they want rent in perpetuity.

I agree.... To BlackRock, it's just business. As I have said before, BlackRock is playing with other people's money. So, with that in mind.. Everyone needing (not wanting) a house should do everything possible to procure it during 2023. Swallow these numbers:
Average house = $400,000
Down payment needed = $200,00

Go cry a river somewhere else. Swallow your pride and live where you can afford. Sell off those safe queens, big old 4 WD trucks, disconnect the Streaming videos and cancel the new Gaming computer. Down size the IPhone and get a flip phone with talk and text on a monthly plan for $30 / month.

Take in a partner on the house... Owning half a house is still better than renting... Open to arguments.

If you are not willing to do that. Go pay $2,000 / month to live next to the Jones's.... They will still look at you like trailer trash.. Might as well move into a double wide.

JMHO

Hobo

 

[Bigfatcock]

Last year I said to buy a house at any cost you could afford.

I said a lot of things that have come to fruition.

I said the big investment entities are chasing yield.

 

[Hobo Hilton]

Last year I said to buy a house at any cost you could afford.

I said a lot of things that have come to fruition.

I said the big investment entities are chasing yield.

We both say a lot of forward looking statements. Our intuition is right more often than it is wrong.
But...............
I must have a photo when you trade that can of beans for that poontang......... Or it did not happen.

 

[Bigfatcock]

We both say a lot of forward looking statements. Our intuition is right more often than it is wrong.
But...............
I must have a photo when you trade that can of beans for that poontang......... Or it did not happen.

Beans for ass will be a thing!

 

[kenny1773]

just make sure you are done with the ass before any beans are consumed

 

[gigamortis]

More beans Mrs. Taggart?.......

 

[Hobo Hilton]

Bank of America CEO Brian Moynihan is "Reading the Tea Leaves"...

JPMorgan Chase CEO Jamie Dimon said earlier this summer that Americans should brace for an economic “hurricane.”

https://www.cnn.com/2022/11/29/economy/bank-of-america-brian-moynihan/index.html

 

[Hobo Hilton]

Let these numbers sink in:
The 2023 value limit for most conforming mortgages for one-unit properties will be $726,200, the Federal Housing Finance Agency said Tuesday. The new limit represents an increase of nearly $80,000 from 2022’s limit.

The world changed. Now we have run away inflation. Same house, same buyers, same agent, everything is the same except for inflation

U.S. to Back $1 Million Mortgages. Affordability Is Still an Issue.

The new limits are important for prospective buyers, since financing a home purchase with a conforming loan can mean certain access to credit and a smoother...

www.marketwatch.com

 

[Hobo Hilton]

Ahhhh.... You are now entering a "sharing economy"..... Why not list all those safe queens and share with your fellow Americans... Go in with 5 other people and buy that $100k pickup truck and just share it.

“We believe this platform will provide the right tools for both owners and residents to effectively manage short-term rental activity without impacting overall housing supply,” a Greystar representative said. “We are collaborating with Airbnb on this innovative approach to participate in the 21st century sharing economy in a thoughtful way.”

Airbnb launches platform allowing renters to host apartments, partnering with major landlords

The company said a new page on its site will list so-called Airbnb-friendly buildings, which will let tenants host their apartments just as homeowners can.

www.cnbc.com

 

[BurtG]

Could be good news for some. Regional, of course.

October data from Redfin indicated that rent prices in the U.S. dropped for the second straight month, falling below $2,000 a month for the first time since April.

National rent prices declined, rents cheaper in 11 cities compared to 2021

Overall, rent prices are up 7.8% in the last year. In March, Redfin reported a year-over-year increase of 17.5%

www.kpax.com

Yeah it’s crap too. All the landowners expenses are up. And most states the scumbag tenants can live rent free for a few months if they decide to stop paying.

 

[Krawlven]

I'll throw this listing out for discussion. It's not too far from my homestead. Link below :
Get things in perspective... In my state the average selling price is almost $500K
Yep, this one needs a lot of TLC. Read the fine print.. The sewer system is installed and county approved (That is a big deal, here). Sits on 1 acre.
Gather $170,000 cash and finance $170,000 .... Your monthly payment will be $1177 / month....
Pull up your big girl panties... Roll up your sleeves... This is the world today. It will not get better.

4014 Illinois Bench Rd, Stevensville, MT 59870 | Zillow

4014 Illinois Bench Rd, Stevensville MT, is a Single Family home that contains 1200 sq ft and was built in 1980.It contains 3 bedrooms and 2 bathrooms. The Zestimate for this Single Family is $301,700, which has increased by $4,700 in the last 30 days.The Rent Zestimate for this Single Family...

www.zillow.com

And not too far from Missoula.
Which at least means possible good job options.

Wife and I paid too much for a fixer upper last year east of Bozeman.

 

[Hobo Hilton]

And not too far from Missoula.
Which at least means possible good job options.

Wife and I paid too much for a fixer upper last year east of Bozeman.

Due to inflation doubling housing cost around Missoula, Getting to be the norm for people to drive one hour to work and another hour to get back home... Bedroom communities are evolving around the Peripheral .. Saw it around Seattle, Boston, Los Angeles, Boston, etc...

 

[Bradu]

This. But most people dont want to "suffer" to get the prize. And that is the problem of personal weakness.

Median mortgage is $2682? Holy shit, I'm definitely one of the poors.

 

[Hobo Hilton]

Median mortgage is $2682? Holy shit, I'm definitely one of the poors.

Another case of "situational irony".
American workers are saving to buy a house. For many that money is being deducted directly from their paycheck and handed over to a, so called, investment specialist. The investment specialist bundles many different accounts and puts those funds into things like real estate investment programs.

A person working a conventional job (private or government) can't afford to buy a house because a company like Blackstone is taking employee savings and buying up entire housing tracts with plans to turn them into "Rental Units".

Quite a scheme... Hidden in plain sight.

https://www.blackstone.com/our-businesses/real-estate/

 

[Hobo Hilton]

Robot Landlords Are Buying Up Houses

Companies with deep resources are outsourcing management to apps and algorithms, putting home ownership further out of reach.

www.vice.com

 

[UKDslayer]

 

[acudaowner]

prices are