Home Forums Hunting & Shooting Hunter's Campfire Building Back Better, with mortgages hitting 6%...

Interest rates are going to go higher too. Record levels in fact. We all knew that. The prices on houses and property values are going to go down big time as well. Those of you that don't think this is going to happen are clueless.. This is nothing we didn't know about. Current administration is the direct cause of this, inflation and the recession.. Even though they say we are at 0% inflation, thus we are not in a recession.. Stupid fuggs...

Does anyone else think that he shouldn't have given his speech in such a luxurious place?

I remember i got 5.75 in 2006 when buying my first house and that was about as low as you could get then. My mom reminded me what hers was during the Carter years.

Bought our last home in 2019, 3.75 for 30, i finally got off my butt when I saw those rates get around 2% and refinanced. I had to put a little down to keep the payments the same but I'm at a 15 year fixed now.


Problem is, folks want that 400k house, but now they can only afford that 250k house, and hurts their feelings. But they have no problem dropping 2k a month for a 2 bedroom apartment. That's what a decent apartment goes for around here.

I know someone who just built a million dollar home, and his buck from last season that is has been ready since May is still not picked up, doesnt have the extra 600 bucks to pay the taxidermist. They want everyone to think they are high cotton, but in reality, they are having a hard time making ends meet due to their choices.

The county I just moved from is getting in on upping appraisels while things are hot, buddys house just got appraised at 600k from the 400k it was last year. Folks are appealing left and right, but I dont know what leg they have to stand on. Looking at comps they have no arguement right now.

You reckon the county is gonna drop them back to 400k when things crash....if they do I bet they take their sweet time doing it.

I remember in the late 70s when mortgages were 22%

Don’t forget to add in the cost of the solar panels on the roof.

Mortgage rate in the first part of the year of 1980.
It was 14.75

Ask me how I know

Dave

When they dropped down to around 12%, I took the plunge.

It appears people have plenty of money to buy whatever they want. People are still buying new trucks faster than the automakers can build them, and they cost more than our house.

I think there are plenty of people like that around!

Bought our first house in 1976, 30 yr @ 7.25% - 2nd house in 1980, 30 yr ARM @ 13% to 18% max - 3rd house in 1983, 30 yr @ 9.25% - 4th house in 1994, 30 yr @ 9% - current house in 2002, 30 yr @ 6.25%, refinanced in 2012 to 15 yr @ 3% and stupidly(?) paid it off in March 2020. Each home cost more than the previous one, but we had good jobs, had a budget and stuck to it. Retired since January 2018 and still have a budget.

Interest rates) go up, they go down, just keeps everybody guessing. Make a budget and stick to it, adjusting as necessary. More difficult these days but it can be done. Many folks don't or can't tell the difference between 'want' and 'need'.

If Joey dumps another couple trillion of "free money" into the system...

Inflation jacks up even further...

And Powell counters with more rate increases.

BASIC BASIC STUFF...

Free money is EXACTLY inflation...

The poor and middle will get hurt the most...

Inflation Reduction Act... my ass.

When I was in college (late 1970's- early 80's) I recall rates were in the high teens like 17-18%. Wasn't pursuing a loan at the time, but I was wondering how folks could afford to borrow $100 K and get by. I was wishing, however, that I had some cash to deposit as CD were great money makers.

I paid 9% on my first mortgage in the early 70`s with 20% down.Paid it off in 10 years.

No its just that they think they can "afford" the payment on their ridiculous 6 or 7 year auto loan with a minimal or no down payment. Might be a slap in the face come year 4 or 5 when they realize they still owe considerably more than the current value of their no longer "new" truck! What they gonna do then, roll the remaining payments into an even more ridiculous loan for a new vehicle, or drive it till its paid off with nothing new about it and not worth much at all, especially anticipating the "green" push by then?

Alot of idiots are in for a rude awakening when this housing bubble inevitably bursts and they come to find out that the house they just had to have by offering $50-$75k over the already inflated price in this market leaves them with little or negative equity should they decide to sell in a few years due to a need to trim expenses etc.

There's nothing at all that is sustainable about this whole economic situation.

If things don't change soon, things are going to really come apart & the only way we are going to get change, if even then, is when the AzzwHole in Chief leaves the WH & the Demons no long control Congress.

But with fixed elections, I fear that we are in for a long, rough ride.

Conserve your resources...............

MM