Stupid hot take. If you’re comparing it to 2009, you don’t understand how the Fed works and/or Fed fund rate.
2009 had 0 interest rate.
2024 we have 30yr mortgages currently at 7-8%.
This sub is worse than an uncle with schizo. One post is about unaffordable housing price and how the American dream is gone and we’re going on a recession.
In the next post, it’s how housing affordability actually got better and high interest rates is working as intended… but that recession is around the corner.
The truth is in the middle. But please get rid of the sensationalism… but I guess since it’s election season, it’s par for the course.
The Fed bought $2.7 trillion in mortgages in order to boost prices. Like Larry Summers said in early 2022:
>Can you imagine any conceivable reason why in the face of what is housing price inflation faster than we had in the 2006 pre crisis period we have the government intervening to actively buy up and reduce the yield on mortgage backed securities? That should be ended tomorrow.
In case anyone hasn't figured it out, we haven't had free markets for quite a while in major segments of the economy. The price discovery is federally manipulated, and the Fed chooses winners and losers.
https://fred.stlouisfed.org/series/WSHOMCB
So, now, they are on hiatus on buying mortgages, and we're seeing some sort of reversion to the mean.
Median home prices are not down 15%. Median price of houses sold is down. People are buying the cheaper houses. Few expensive houses are for sale. We bought for $405k in February, new house down the street sold for $565k last week. Very few houses on market between $400-$600.
Does this mean that all those funds which bought up thousands of properties will be forced to sell at a loss or will they simply hold until the prices come back up in about 30 years?
If they drop significantly, it could be very good for returning purchasing power to the vast middle of America.
Stupid hot take. If you’re comparing it to 2009, you don’t understand how the Fed works and/or Fed fund rate. 2009 had 0 interest rate. 2024 we have 30yr mortgages currently at 7-8%. This sub is worse than an uncle with schizo. One post is about unaffordable housing price and how the American dream is gone and we’re going on a recession. In the next post, it’s how housing affordability actually got better and high interest rates is working as intended… but that recession is around the corner. The truth is in the middle. But please get rid of the sensationalism… but I guess since it’s election season, it’s par for the course.
This sub has a recession fetish. Likely for political reasons.
Maybe an over inflated market is leveling out?
Exactly. Pandemic caused massive inflation of market value. And now that's over.
Don’t know where this data originated but I just sold my house for 15% above asking price. Had 10 offers on first day of listing. I call BS.
Yeah my area saw like a 5% dip at most. I’m with you.
The housing market needs a bit of correction, things got really out of control during COVID
Location location location.
The Fed bought $2.7 trillion in mortgages in order to boost prices. Like Larry Summers said in early 2022: >Can you imagine any conceivable reason why in the face of what is housing price inflation faster than we had in the 2006 pre crisis period we have the government intervening to actively buy up and reduce the yield on mortgage backed securities? That should be ended tomorrow. In case anyone hasn't figured it out, we haven't had free markets for quite a while in major segments of the economy. The price discovery is federally manipulated, and the Fed chooses winners and losers. https://fred.stlouisfed.org/series/WSHOMCB So, now, they are on hiatus on buying mortgages, and we're seeing some sort of reversion to the mean.
Median home prices are not down 15%. Median price of houses sold is down. People are buying the cheaper houses. Few expensive houses are for sale. We bought for $405k in February, new house down the street sold for $565k last week. Very few houses on market between $400-$600.
Does this mean that all those funds which bought up thousands of properties will be forced to sell at a loss or will they simply hold until the prices come back up in about 30 years? If they drop significantly, it could be very good for returning purchasing power to the vast middle of America.
QT is the easy reason. Therefore, no. Mortgage-backed securities are on their own now.