US mortgage rates jumped this week, climbing closer to 7%. The move follows last week’s rate hike from the Federal Reserve, and the downgrade this week by Fitch Ratings agency of US sovereign debt, and of Freddie Mac and Fannie Mae.
Credit downgraded largely due to the J6 insurrection. Great job MAGAts. May you never be able to afford a home.
While J6 did factor into it, the rating is on the governments ability to pay back its debt, aka to not default.
The bigger issue, in this context, that I’ve seen is the republicans playing with the debt ceiling and threatening to not raise it. This directly makes it more likely the US government can’t/won’t pay its debt off.
It’s mostly J6.
Countries with attempted coups aren’t stable investments.
The market is fucked. The house I bought 3 years ago has doubled in value. It’s absolutely insane.
And you might be thinking, Great sell it! But then I have to find a new house that isn’t being swallowed up by businesses paying cash for them (good luck). And we will never again see 2% mortgages in our lifetime, so I’m just going to die in this massively overvalued house.
My taxes have doubled in the six years we’ve had our house. Mortgage + taxes + insurance are still way cheaper than what dickbag landlords want to charge for an apartment half this size in the current market. It helps that I’m a DIYer and can fix pretty much anything that goes wrong with the house.
I don’t know what to say. You sound screwed but could have been screwed much worse. Sorry or congrats?
My landlord inherited the property and he is a lazy asshole. Every few years I change the dates on my lease and have him sign it. No plans to ever move. The lowest priced home that isn’t condemned in my city stands at half a million. A friend of mine was out bid on a home in the nearby city by 100k and in cash.
Same wrt buying a house at the right time. We do plan on selling ours though at or close to retirement. We’re both working pension jobs so we’ll just buy a modest RV and live off of our retirements + the proceeds from the eventual house sale (if there’s still an America and American market at that point). That’s the plan, anyway.
The survey includes only borrowers who put 20% down and have excellent credit.
That’s rough.
Yeah, I’m really curious what this is going to do to the overall economy. Personally, I’ll definitely be spending way less on non-essentials once payments resume…
My prediction is that the entertainment and hospitality industries are going to be the first to have massive layoffs.
And a lot of the people who work for that industry are college students, which will accelerate the issue.
“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s chief economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
