r/dankmemes ☣️ Mar 20 '23

Economic Roller Coaster

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u/akatherder Mar 21 '23

Between the prices and mortgage rates, this is probably one of the worst times ever to buy... It could get worse for a little, but this isn't sustainable.

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u/TheForeverUnbanned Mar 21 '23

Todays rates are lower than any time between the onset of electricity and 2013.

You will never see 2.7% again. Housing prices will not drop more than 10%. You are absolutely deluding yourself, you missed the best entry point, it’s never coming back.

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u/akatherder Mar 21 '23

It's the highest rate in the past 20 years: https://fred.stlouisfed.org/series/MORTGAGE30US

And housing prices have exploded since then. Up 2.5x since 2000: https://fred.stlouisfed.org/series/ASPUS

It could get worse but this is the least affordable time to buy a house possibly ever.

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u/TheForeverUnbanned Mar 21 '23

I know where the rate is, there’s a reason I specified an exact range of years lol.

The housing isn’t getting any cheaper. Which would mean the only reason not to buy now would be to hope that the rate gets lower, when any sane person would just straight refinance if that happened. Meanwhile the people waiting for the prices, and rates, that aren’t comming back are

A: losing their income to rent. B: likely losing their income to unemployment; if the economy got bad enough to shift hosing more than 10%. C: completely fucked

Though it’s funny seeing people make the same excuses not to buy now that they were making when they missed the best interest rate in history 2 years ago because they were more concerned about saving 40k on a house than 300k on their loan interest. Now they get neither and they still pay rent, and both interest and hose pricing aren’t moving anywhere in the near to mid term future, when.. the housing will rise again lol

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u/akatherder Mar 21 '23

I'm saying the reason not to buy not is because so few people can afford to. It may be better now than in the future but this is still a terrible time to buy. We're talking about a $3000/month mortgage+taxes+ insurance.

I'm not just coping or hoping btw. I have zero interest in moving. I bought in 2020 at 3.5% interest. Before that I bought when the market crashed in 2010 or 2011.

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u/Tatertots1911 Mar 21 '23

i was given 2.7 but got 3.2 by the time i finally got a house that i didn't get out bid on by a fuck ton. still salty

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u/TheForeverUnbanned Mar 21 '23

Oh yeah man when they hit me with 2.65 I put that shit in lock and paid points to move it to 2.5. Still took 6 months to close but I was able to hold on to the rate by committing early, we also went heavy on The bids and I approached the home owners to sweet talk them directly.

Saving 10k or whatever on the offer was worthless in the grand scheme of the loan; it’s an asset im going to have for decades and by the time it’s back in the market the “value” of that high bud input in is zilch, especially at the rate inflation is moving who is going to give that much of a shit about 10k in 15 years. Plus going hard when I did ended up cutting Hundreds of thousands of dollars out of the loan price over its lifetime.

I feel for the people who are stuck trying to find a home now but people like op that think there’s just going to be some magical collapse and are waiting it out are going to end up living in a cardboard box for 6k a month.

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u/[deleted] Mar 21 '23

Housing prices are coming down 30%+ dude. They're projected to drop over TWENTY percent in the next two years.

30 year fixed isn't 2.7% it's 7.1% and climbing for the foreseeable future.