The housing market just slid into a full-blown correction
- Thread starter OfTheCross
- Start date
It's helpful to put things in historical perspective, they have been worse and they have been better.
I would also say, if you really want to buy. Go for it. You are not locked into these rates forever and if you can handle it in the near term, you can always refi when they inevitably drop again
30-Year Fixed Rate Mortgage Average in the United States
View data of the average interest rate, calculated weekly, of fixed-rate mortgages with a 30-year repayment term.
fred.stlouisfed.org
I would also say, if you really want to buy. Go for it. You are not locked into these rates forever and if you can handle it in the near term, you can always refi when they inevitably drop again
mastermind
Rest In Power Kobe
One thing to consider is that houses used to cost A LOT less in correspondence to those interest rates. And that means less even with inflation.It's helpful to put things in historical perspective, they have been worse and they have been better.
30-Year Fixed Rate Mortgage Average in the United States
View data of the average interest rate, calculated weekly, of fixed-rate mortgages with a 30-year repayment term.fred.stlouisfed.org
I would also say, if you really want to buy. Go for it. You are not locked into these rates forever and if you can handle it in the near term, you can always refi when they inevitably drop again
Domingo Halliburton
Handmade in USA
I'm hoping higher rates gets rid some of these real estate investors that won't be able to refinance their properties. And cool the market off some. At the end of the day, a lot of these borrowers are a lot stronger than in 2008. Full blown meltdown in the title is a little hyperbolic at this point.
There's a huge imbalance between buyers and sellers (i.e. lack of supply) and this should even it out some.
There's a huge imbalance between buyers and sellers (i.e. lack of supply) and this should even it out some.
NZA
LOL
The last time I checked, Americans on average did not have a months worth of expenses stashed up.
If a recession happens and jobs are shed, there will be a domino effect in the housing market. Won't be on the level of 2008 cause banks smartened up, but it'll still be spooky hours
NZA
LOL
might need to be some kind of quiz on the back of the loan application...them assessed values have to go down then
Good 
You are not wrong, in fact I may now reconsider what I said. Just watched a couple of documentaries yesterday and today about how individuals were sold mortgages into homes they could not afford with the idea (from banks) they could refi into something cheaper later.
That works if your home value doesn't begin to decline, broader housing/mortgage market is healthy and you don't have a change of income.
Forgot which show it was that I watched but it may have been this one (its on amazon)
Also, home affordability which you talked about was discussed.
Domingo Halliburton
Handmade in USA
The last time I checked, Americans on average did not have a months worth of expenses stashed up.
If a recession happens and jobs are shed, there will be a domino effect in the housing market. Won't be on the level of 2008 cause banks smartened up, but it'll still be spooky hours
I don't necessarily disagree. And I think people will look back and say the fed held interest rates too low for too long. Raising rates should've happened before the pandemic. People have been eating off this free money for too long.