Mortgage rates back to 7%

[Rekkapryde]

luckily for me, I don't live in a city where there are HOA's. that type of bullshyt is popular in most of the suburbs, and is nothing more than a cash grab IMO. john oliver did an episode about them not too long ago about how HOA's are bullshyt. especially for single family homes.

Our HOA is 900 per year. Not terrible for the calibre of our neighborhood and the shyt we have in it to maintain (landscaping, our clubhouse/pool, tennis courts). Especially the clubhouse/pool/tennis court area

 

[bourgeoisie tall freak]

7% what does that mean is that good???

depends on the mortgagee but i am assuming most people don't got it like that to still make it work to their benefit.
i got a mortgage almost 10 yrs ago at about 5.5%
but going on how i've paid it off ahead of time, there's is no way that they are going to see more interest than principle or even half or even 30%, and my payment was never above $1000.
got about 350k equity
i'd say i'm still miles ahead of the housing game despite not having 2-3% interest
so much so i didn't even bother to refinance when the rates were low, i rather put that 3-4k towards the balance and save money that way

tldr: there's are ways to make a mortgage work in your favor even if some terms aren't the best

 

[beenz]

Our HOA is 900 per year. Not terrible for the calibre of our neighborhood and the shyt we have in it to maintain (landscaping, our clubhouse/pool, tennis courts). Especially the clubhouse/pool/tennis court area

I hate the fact that they dictate all these rules like house color, they dictate landscaping and the WOAT is they can give you tickets for any infraction at will and eventually put a lien on your shyt if you don't comply. None of these things are appealing.

also, we have an extremely robust park district. there's tennis courts and an indoor pool 3 blocks away. 4 separate playgrounds. 2 are 1/2 away and one i2 blocks away, while the other is 3 blocks away.

 

[Adonai]

Gah damn, seems like I’m going to be a part of #rentgang for a good lil minute. Which is crazy seeing how I was approved for 3.2 mortgage rate in 2021 but every house was a bidding war. Monthly payment on the same house would now be like $2700 compared to $1700 when I was approved.

 

[Rekkapryde]

I hate the fact that they dictate all these rules like house color, they dictate landscaping and the WOAT is they can give you tickets for any infraction at will and eventually put a lien on your shyt if you don't comply. None of these things are appealing.

also, we have an extremely robust park district. there's tennis courts and an indoor pool 3 blocks away. 4 separate playgrounds. 2 are 1/2 away and one i2 blocks away, while the other is 3 blocks away.

City life vs Burb life fam.

Granted, I rather have the HOA than not. They do get on my fukkin nerves sometimes (we had to pressure wash our driveways as a mandate this year). But as long my property value going up

 

[Sunalmighty]

City life vs Burb life fam.

Granted, I rather have the HOA than not. They do get on my fukkin nerves sometimes (we had to pressure wash our driveways as a mandate this year). But as long my property value going up

ridiculous

 

[Rekkapryde]

ridiculous

thankfully my father in law gave us his that he hasn't used and I did it myself.

Won't lie tho, our driveway walkways and sidewalks do look better.

 

[Dilltastic VolWon(derful)]

Why do you believe the market will absolutely crash? What is this based on?

I think the “doom and gloom” belief is over exaggerated. The market will dip for sure, but crash? Not likely.

- Less than 5% of the mortgages in the market are considered “high risk”.
- Compare this to 2006/07 where that number was closer to 50%.
- Contrary to popular belief, banks/lien holders have little desire to foreclose on properties. That isn’t their business model and how they make profit. They do not want the properties. They want the interest from the mortgage payments. That’s how banks get paid.
- In fact, a lot of banks suffered when the market crashed the last time due to the large number of properties they had to hold. That costs banks money.
- The percentage of foreclosures across the country has not seen a significant increase for almost a decade.
- In GA, where I am, the foreclosure market has been more or less nonexistent for 7+ years.
- There is also a huge misconception that if the percentage of foreclosures increases that will lead to cut price deals.
- The reality is that the few foreclosures you find in the market currently are selling for at/around market value.
- This is due to low inventory nationwide. Simple supply and demand principles.
- There are not enough homes/inventory on the market to meet the current demand.
- In Atlanta, currently, there is about a 2.5 month supply of inventory.
- For context, a balanced market would be roughly 6-7 months worth of inventory. Buyers market would be 9+ months of inventory.
- the shift required to lead to a buyers market and a subsequent crash would require hundreds of thousands of homeowners to sell at one time (willingly or by force). It simply isn’t going to happen.

Current interest rates are in line with what they were in the early 2000’s. There was a day and time where rates in this country were comfortably over 10% (few decades ago).

6-7% isn’t as astronomical as some make it out to be. 4-5% rates have never been the norm or standard. The 2-3% rates could prove to be a once in a lifetime occurrence. That’s why the market went crazy. Buyers realized that was the time to buy more house for less money. That ship has now sailed.

Anyone sitting on the sidelines waiting for those rates to return or for the market to crash so that they can get a $1 million dollar house for $250k will be dreaming for a long time.

This post alone should be stickied on every page in this thread. Broke it down perfectly and summed it up so that it’s easily digestible

 

[Sunalmighty]

thankfully my father in law gave us his that he hasn't used and I did it myself.

Won't lie tho, our driveway walkways and sidewalks do look better.

No problem with paying for it but for some punk ass HOA to mandate it is ridiculous.

I'd rather have an HOA than not to an extent.

When they start that bullshyt I can do without.

But when you got folks that got overgrown grass, loud music all day and broken down cars parked on the street and in their driveway

 

[Rekkapryde]

No problem with paying for it but for some punk ass HOA to mandate it is ridiculous.

I'd rather have an HOA than not to an extent.

When they start that bullshyt I can do without.

But when you got folks that got overgrown grass, loud music all day and broken down cars parked on the street and in their driveway

exactly. Gotta take the good with the bad.

Paid to much to have my property value go down due to goofiness.

What I can't stand is cats getting mad about the HOA rules knowing the neighborhood had an HOA in place and you just didn't read the shyt.


as with anything, you pay a premium sometimes not to deal with the bullshyt.

 

[Sunalmighty]

Why do you believe the market will absolutely crash? What is this based on?

I think the “doom and gloom” belief is over exaggerated. The market will dip for sure, but crash? Not likely.

- Less than 5% of the mortgages in the market are considered “high risk”.
- Compare this to 2006/07 where that number was closer to 50%.
- Contrary to popular belief, banks/lien holders have little desire to foreclose on properties. That isn’t their business model and how they make profit. They do not want the properties. They want the interest from the mortgage payments. That’s how banks get paid.
- In fact, a lot of banks suffered when the market crashed the last time due to the large number of properties they had to hold. That costs banks money.
- The percentage of foreclosures across the country has not seen a significant increase for almost a decade.
- In GA, where I am, the foreclosure market has been more or less nonexistent for 7+ years.
- There is also a huge misconception that if the percentage of foreclosures increases that will lead to cut price deals.
- The reality is that the few foreclosures you find in the market currently are selling for at/around market value.
- This is due to low inventory nationwide. Simple supply and demand principles.
- There are not enough homes/inventory on the market to meet the current demand.
- In Atlanta, currently, there is about a 2.5 month supply of inventory.
- For context, a balanced market would be roughly 6-7 months worth of inventory. Buyers market would be 9+ months of inventory.
- the shift required to lead to a buyers market and a subsequent crash would require hundreds of thousands of homeowners to sell at one time (willingly or by force). It simply isn’t going to happen.

Current interest rates are in line with what they were in the early 2000’s. There was a day and time where rates in this country were comfortably over 10% (few decades ago).

6-7% isn’t as astronomical as some make it out to be. 4-5% rates have never been the norm or standard. The 2-3% rates could prove to be a once in a lifetime occurrence. That’s why the market went crazy. Buyers realized that was the time to buy more house for less money. That ship has now sailed.

Anyone sitting on the sidelines waiting for those rates to return or for the market to crash so that they can get a $1 million dollar house for $250k will be dreaming for a long time.

Do you think the rates will return 2-3% if they can get inflation under control?

 

[Rekkapryde]

Do you think the rates will return 2-3% if they can get inflation under control?

it'll go down, but 2-3% again ain't happening. Maybe 4%

 

[Vandelay]

I'm going to need to be a millionaire to buy a fukking house in any decent-sized metro area.

 

[karim]

It’s crazy how I’ll watch a PBS documentary on the gilded age of the late 1800s and we are still having the exact same economic issues that they had way back then.

We really don’t learn shyt.

Oh, we did learn, but then lobbyists and politicians started calling the regulations and social spending programs that were implemented as a result unnecessary red tape and a waste of taxpayers money and spend the 80's and 90's deregulating and slashing the wellfare state

 

[beenz]

Gah damn, seems like I’m going to be a part of #rentgang for a good lil minute. Which is crazy seeing how I was approved for 3.2 mortgage rate in 2021 but every house was a bidding war. Monthly payment on the same house would now be like $2700 compared to $1700 when I was approved.

that's the problem with low interest rates. it means EVERYONE is going to be trying to buy a house, thus driving the prices way up causing the bidding war u mentioned.