With mortgage rates already above 7%, experts are sounding the alarm that we might see them hit a whopping 8%. This is due to the U.S. Federal Reserve potentially hiking its benchmark interest rate again, especially if the economy continues to show strength. This is a concerning sign, reminiscent of the Great Recession vibes. High rates are already shaking the housing market. Builders are seeing a drop in buyer traffic, and the rising rates are making potential homeowners think twice. But there's a silver lining. Some experts believe that the U.S. economy is showing early signs of cooling, which might lead to a slowdown or even a drop in these rates. But, as always, there are no guarantees. For some perspective, back in 1981, the 30-year mortgage rate soared up to 18%. But what does this mean for the housing market now? If the 30-year mortgage interest rate hits 8%, the market might freeze with fewer buyers and even fewer sellers. And while high rates might not immediately impact home prices, if the job market takes a hit, we could see a significant drop. http://archive.today/2023.08.16-150221/https://www.marketwatch.com/amp/story/mortgage-rates-could-hit-8-economists-say-citing-a-worrying-sign-not-seen-since-the-great-recession-edf2b4a4
Great Recession vibes. You don’t make that statement lightly.
Maybe you don’t understand economics? Stick to CAP theorem
Enlighten me. Hope your response ages well in coming months.
Lol. The news outlets should talk to each other. Other news outlets are saying that the housing market is still resilient. Look at real estate stocks like Lennar and other. Outpaced S&P so far this year and have good books for the next 2 years. I don’t know man, it looks like people have a lot of money and are still buying.
The housing market is trash. If it was resilient, there'd be construction to ease the demand crunch. It's not going to come tumbling down, though, because literally everyone except prospective first-time home buyers (a minority demographic that doesn't vote as much as homeowners) has a vested interest in keeping home prices from falling. 2008 was a freak incident, not part of the normal growth/recession cycle.
Home sales are the lowest in history. Who is buying?
I wanna sell my house that I'm renting it out but due to these rates i simply can't sell and buy a different house.
This dynamic change when prices starting dropping fast.. example a home that was worth 500k in 2020, is worth 800k and then suddenly if sales for the comparable comes down to 750k, many people will start to list since they dont want to loose 250k gain.. high rate or not.. so three things, signs of correction and unemployment increase.. and a recession.. but i can tell you as of today all economic indicators are good and nothing suggest recession yet
That already happened to my property but i won't simply sell it
No move. I surrender 🙇♂️
Buy buy buy
Listen to this https://youtu.be/G0KsUL269NE
For all those dreaming about lower rates, its gone !!!! Real 10 years rates could be 4.75 to 5%.. that has huge implications on housing , stock market.growth companies .. i cant imagine why wouldn’t a significant portions of money move to fixed income now
I see bears are coming out of caves now again after getting crushed earlier. This is the last leg of bear mkt. Buckle up boys.
Affordability is approaching pre great recession lows.
All chat no bat