At what mortgage rate RE bubble pops?

Uber
cinci

Go to company page Uber

cinci
Feb 23 16 Comments

Today 30Y mortgage rate edged to 4.2%. At what rate does remaining buyers are priced out and inventory pile up starts?

#mortgage #housing

At what mortgage rate RE bubble pops?
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    • Uber
      cinci

      Go to company page Uber

      cinci
      OP
      For Bay Area, buying power mostly comes from stocks then mortgage rates. If stocks continue to trade sideways to down then housing will cool off.
      Feb 23
    • I can see cool off but you forgot one important thing . People changing jobs and locking that low stock price .
      Feb 23
  • Apple
    otmc

    Go to company page Apple

    otmc
    The market has already turned. Tech stocks down big time, most of the potential buyers (esp with big tech money) already have decided to wait it out. Because RE is not liquid like stocks so you don’t see the impact right away. But in next 2-3 months, you will start seeing the softening. New mortgage applications already down at levels not seen since 2019(last time when it slowed a bit)
    Feb 23 5
    • Apple
      otmc

      Go to company page Apple

      otmc
      Lol. You thought I was bluffing. This is true for all the high flying counties.
      Feb 23
    • Uber
      cinci

      Go to company page Uber

      cinci
      OP
      Previously I was at Seattle and bought single family home at 450k in 2015. Right now redfin estimate shows 850k and even bank is willing to re-finance at 840k. Redfin has iBuying program and they gave me a cash offer of 716k late Jan.
      Feb 23
  • Meta
    silco

    Go to company page Meta

    silco
    My guess is around 5%
    Feb 23 0
  • That’s just average price, word on the street people are still getting low-mid 3s due to high credit scores and other relationship discounts.
    Feb 24 0
  • New
    watchudoin

    New

    watchudoin
    Real wages down. Mortgage costs going up. Keep buying but you’ll see what that means soon
    Feb 23 0