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Economy

nmmi

(248 posts)

4. My post didn't say that "like mortgage rates are higher than they've ever been"

Reply to Jrsygrl96 (Reply #3)

Thu Jan 2, 2025, 03:12 PM

Jan 2

the OP post said they are the highest in about 6 months which is a lot shorter than "they've ever been".

With my house, purchased in mid-1980, I very fortunately assumed an old 9% mortgage, put about 25% down, and financed the rest with a 12% contract for deed with a 3 year balloon. So yes, I'm extremely very well aware that interest rates are much lower now than bak then.

Note also that house prices are considerably higher, as a multiple of median and average annual wages, than they were back in 1980.

This post from 2022 --
Median house price was 3x median income in the 80s, it's close to 7x now
https://www.democraticunderground.com/100216658196#post8

So, it’s gets me a bit steamed that people talk like mortgage rates are higher than they’ve ever been, because they’re NOT!

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30Y Mortgage rate 6.91%, highest level since early July. AND NO, INTEREST RATES ARE NOT COMING DOWN [View all] nmmi Jan 2 OP

What do you mean interest rates aren't coming down? dem4decades Jan 2 #1

"Why won't interest rates go down?" - because ponies are very high maintenance items, a crushing economic burden nmmi Jan 2 #2

I guess it's only old fogies like me who remember Jrsygrl96 Jan 2 #3

My post didn't say that "like mortgage rates are higher than they've ever been" nmmi Jan 2 #4

Good! Fiendish Thingy Jan 2 #5

No, its not good. Yeah, the aspect that private equity and corporate owners will have a tougher time is nice, nmmi Jan 2 #6

If people can't qualify for mortgages at current prices, prices will have to come down Fiendish Thingy Jan 2 #7

Enough people are qualifying for mortgages to keep prices going up, and have been for years nmmi Jan 2 #8

It only took 8% of borrowers in arrears to trigger the housing collapse of 2008 Fiendish Thingy Jan 2 #9

I don't doubt that an economic collapse is quite possible, and it will solve the inflation problem too (for some time), nmmi Jan 2 #10

Collapse is bad; conditions, including high mortgage rates, that bring down prices- definitely good. Nt Fiendish Thingy Jan 2 #11

Only if they bring down mortgage payments, or temper the increase. Otherwise definitely bad if we have mortgage nmmi Jan 2 #12