According to Bankrate.com, the average 30 year mortgage jumped to 7.06 today, after touching on 7% last week. Please post your "7% is not high, my first mortgage was at XXX% posts below, in nice ,orderly, increasing order.

Any bets on how fast this will put a serious crimp on housing starts?

https://www.bankrate.com/mortgages/todays-rates/mortgage-rates-for-monday-october-3-2022/

Mortgage rates have been on a wild ride as of late, with the 30-year fixed now past 6 percent as the Federal Reserve cracks down on inflation. The rate chart could continue to look choppy — the Fed’s rate-raising stance against inflation also could lead to a recession, and that could cause mortgage rates to retreat.

The central bank raised rates again at its September meeting. The one-two punch of consecutive rate increases of three-quarters of a point are likely to cool the economy. “The cumulative effect of this sharp rise in rates has cooled the housing market and caused the economy to start slowing, but hasn’t done much to lower inflation,” says Greg McBride, CFA, Bankrate chief financial analyst.
Average mortgage rates today
Product Rate Last week Change
30-year fixed 7.06% 6.59% +0.47
15-year fixed 6.16% 5.80% +0.36
5/1 ARM 5.25% 4.90% +0.35
30-year fixed jumbo 7.06% 6.58% +0.48

Rates as of October 3, 2022.

T

the whole idea of crashing the economy to control inflation seems surreal to me.

its a supply and demand problem but what they want to do is decrease demand, not increase supply

I assume you were not paying attention when Volker fixed the Carter inflation mess ?

As for housing starts, no impact as unlike 08' there is a huge shortage of both single family and rental properties.

When Jimmie was President I had a 17.5% 1/4ly variable mortgage. We still bought a house because we had the money as do people today.

Inflation is a PIA but pales next to the 100s if not 1000s of terrorists now running loose.

Two dozen RC drones filled with radioactive waste would shut the country down in one day.
Piece of cake for ISIS or whomever.

"I'm from the guv'ment and here to help"

Housing starts were already declining . Did you think the last 18 months of housing market was sustainable? Hell no. It's just correcting. The sky isn't falling.

Pray for Ukraine

I don’t know exactly how far the housing market is going to fall but beginning in mid December the ocean freight bookings fall off a cliff. There are more empty bookings starting in mid December than there was when China was closed from Covid. Everything is going to crash and crash hard !

Interesting item there.

Where do you house another 3.5 million illegals?? Are the all living in their Tio Chuy’s basement???

All types of housing going up all over Clarksvegas

Hasn't seemed to stop for years around here.

Mortgages are for losers and women. For 60 straight years I lived in a tent behind the sewer plant, eating cattail roots and frog meat three meals a day. Paid cash for my doublewide, ba Gawd. That's the only way to do it and be a man.

John Wayne never took out no mortgages.

I believe it was under Carter when mortgages hit 10%. A lot of people bought way over their heads in those days but it was from interest, not from buying more house than they needed. I recall buying a house at something like 6.5 way back when.

Another 300 basis points needed to curb inflation. Mortgage rates will top 12-13%, maybe more.

I think our mortgage rate in Virginia Beach in ‘79 was right at 17% IIRC.

So, if inflation is too much money chasing too few goods....

Why does the government make it more expensive for producers to borrow money for long term capital improvements that would increase the production of those goods?

<rethorical question> Why does the government just not cut spending by 25% and "take away the punch (pork) bowl?"

I know, I know....

THANK YOU!!!

The rest of you do a Google search on "Amortization Tables" on a $750k Mortgage at 13%... and post up your findings.

The USA is totally fugged in 2022...

And this is why crashing the economy (demand) won’t stop inflation. It’s definitely supply / demand issue. The govt. has increased the supply of USD’s lessening the demand for them.

All by design. Fug the dems and ball less republicans that created this mess.

Only thing Democrat’s can build is House of Cards & a Kangaroo Court.

Yep. Chris Markowski said on his show a few weekends ago something to the effect of:

It takes a special kind of imbecile to look at an inflationary economy that wasn’t caused in the least by low interest rates and try to reverse said inflation with high interest rates.

The idiots are trying to reduce us to a subservient destruction of the middle class.

U is 1 tough SOB

My Dumbazz bought ZIM stock 6 awhile back. It’s taking an absolute beating. Guess I’m holding long term and hoping for an economic rebound in a few years.

Because artificially increasing supply, which is how the gov does it, requires deflating the currency even more.

I would like to see a depression. It helps with the entitlement mentality.

I'd settle with some of those 80,000 new IRS agents working on entitlement fraud, but we all know dats racis!