Mortgage Rates Hit 5% for First Time Since 2011

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Just bought a house in Jan but it’s being built so I can’t secure a loan till it’s complete in ~June. Not looking forward to the mortgage rate I’ll be locking in 🙃

mike_gundy666

I got 2.5% in January. Looking good right now although I suspect home values can’t remained this elevated in the face of current rates. Oh well, a home isn’t like a financial asset where you can try and time the market. When you reach a point in life that you need a home you’re just sort of stuck hoping you get a good deal.

10133960

I’m seeing 6.23% locally in Southern California where a 1200 square foot dump is half a million. I feel for anyone looking to buy and don’t know how they can.

tilineedathrowaway

I can already see the ripple effect this is having on the housing market locally – my zip code which has only ever had a few homes actively listed at a time over the last few years (due to people not selling and, when they do, selling so fast they don’t actually hit sites like Zillow) are now flooded with homes. I get alerts and over night I saw 4 more listings come on to market! Plus 2 additional homes that were “updated” due to drop in asking price. Makes sense as people, probably correctly, feel this is the top of the market. Curious to see how the next year plays out in major markets now that rates are moving up and inventory is increasing. I predict that supply will outrun demand in homes pretty quickly. Next year will be very interesting for the average american as inflation continues to boil over, interest rates rise, and wages remain stagnant.

fossilized_poop

Between Inflation and Recession the Fed will clearly choose recession. Today’s Inflation is 3 years of Trump’s stimulus ($6.5T) + Demand Crushed by lockdowns for the bungled outbreak + stipends too small to adequately maintain consumption. Wage and Price Controls at the outset could have prevented most of this but GOP ideology and Trump incompetence made this an unlikely path.

rucb_alum