Don't forget the real estate situation in China and now Australia. That will infect our economy too. Why does China have such a strong lockdown now? I think they're preparing for a major collapse.
Good assessment. I also think they know there will be a food shortage in the next 2 years so they are starving and allowing mass suicide until then.
kwg
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
How many houses would have to go into foreclosure to eat up the housing shortage, overwhelm the investment banks, and overwhelm the individual investors.
Same applies to the job market.
I know you read an article. We all read articles.
Why are mortgage companies, banks beginning to lay off people now? Are they projecting more business the next two years?
Refi boom is over thanks to rising interest rates.
I expect a slow down and maybe even a pull back in the real estate market. Crash, no. They didn’t make a million subprime mortgages like they did before the last legitimate crash.
People will get locked into their homes for awhile and will probably go a little upside down for a bit, but it will be cheaper to pay the mortgage than to rent. If you think the real estate market has been nuts, look at the rental market.
Wells Fargo laid off just under 600 mortgage brokers recently.
LOTS of people are getting priced out due to hikes in rates.
7 years ago when I got my mortgage, I had to fight to get a fixed rate, they were pushing ARM's hard then - don't know if they are now but I imagine people still took ARM's.
Foreclosures will be snapped up by large firms, not individual people
Shipping from China takes an additional 2 months Or more now. More shortages
Demand for Chinese shipping is dropping. Dropping enough that the spot price from China to US has dropped. Consider that a LARGE chunk of supply is effectively off the market due to Shanghai lock downs, thus skewing the supply/demand ratio - it's still at such a point where demand has dropped so spot pricing is dropping. If Shanghai was open - the drop would be even more stark.
fjb...gets full credit for the gas situation....but I dont think so on the housing ...its been coming for awhile....all the cheap money hasnt just been bidens doing.....bob
Oh It's all on him, the Fed should have acted many moons ago.
yes they should have...when trump was in....low interest rates makes one a hero....plenty of blame to go around....bob
fjb...gets full credit for the gas situation....but I dont think so on the housing ...its been coming for awhile....all the cheap money hasnt just been bidens doing.....bob
I agree, but don’t really give a damn if he gets the blame.
Wells Fargo laid off just under 600 mortgage brokers recently.
LOTS of people are getting priced out due to hikes in rates.
7 years ago when I got my mortgage, I had to fight to get a fixed rate, they were pushing ARM's hard then - don't know if they are now but I imagine people still took ARM's.
Foreclosures will be snapped up by large firms, not individual people
Zillow was buying houses left and right and has abandoned that practice in the last few months.
Zillow thought it would be a good idea to buy homes, do minor renovations, and flip, all based on an algorithm.
Sounds good until you can’t find anyone to do minor renovations.
Their comps and "estimated market price" was fairy dust too. Disconnected from reality. They were buying homes at an inflated price based on bad assumptions and then couldn't flip them when a live Realtor started talking to people.
Wells Fargo laid off just under 600 mortgage brokers recently.
LOTS of people are getting priced out due to hikes in rates.
7 years ago when I got my mortgage, I had to fight to get a fixed rate, they were pushing ARM's hard then - don't know if they are now but I imagine people still took ARM's.
Foreclosures will be snapped up by large firms, not individual people
Arms make up 4%.
WF has the Worst mortgage dept. last choice
4% is not a small number in total. And I'd suspect they're also at the higher end of the spectrum as people stretched to get more home. I bought a home with fixed rate at 1/3 of my "approved amount". I suspect I'll be okay. Even when switching over to a CU last month, they of course wanted to know if I wanted to bring anything over like a mortgage - they can't touch my rate. Not even close.
WF may suck but they write a lot of mortgages. 205 billion worth in 2021
How many houses would have to go into foreclosure to eat up the housing shortage, overwhelm the investment banks, and overwhelm the individual investors.
Same applies to the job market.
I know you read an article. We all read articles.
Man, I hope you are right and I’m wrong. I don’t see a lot of folks around my area sitting on cash and waiting for a real estate drop. I see a lot of folks barely keeping their heads above water.
How many houses would have to go into foreclosure to eat up the housing shortage, overwhelm the investment banks, and overwhelm the individual investors.
Same applies to the job market.
I know you read an article. We all read articles.
Man, I hope you are right and I’m wrong. I don’t see a lot of folks around my area sitting on cash and waiting for a real estate drop. I see a lot of folks barely keeping their heads above water.
The American tax payer funded covid cash scheme was just another huge money laundering scheme like in 2008. The cash filtered though our economy and ended up again in the wealthiest people around the world.
OF COURSE AS ALWAYS THE VAST MAJORITY OF AMERICANS DID NOT PREPARE
I think Brick and Mortar will not die, it may come back a bit but likely the issue is inventory. There's a ton of it. EVERY strip mall and major mall and "office complex" I've driven past in the last year has space available.
3 days ago -
According to a report from Mastercard SpendingPulse, shoppers are pulling back from ecommerce as they grapple with inflation and are eager to shop in stores again. E(e)tsy, Wayfair, Poshmark, and Shopify all saw their stocks fall as they posted less than stellar results.
Retail spending grew 10%, while ecommerce fell 1.8%. After this market cycle, I think Amazon and Walmart will emerge strengthened compared to a lot of DTC players.
