You need a PLUS account to view this content. Try one month of PLUS for FREE.
Already have an account? log in
Lower Mortgage Rates Fail To Revive Moribund US Housing
Flat. That was contract activity in the US housing market last month.
Wednesday's sole, lonely macr
Back in the day I would have killed for a 6 rate on a mortgage. Have expectations been distorted by the extended zero rate environment?
Yes. Absolutely they have. That’s the crux of the issue.
My first property came with a 10%+ rate, peak early 80s rates in Houston. Then the company moved me and my team as oil prices dove in ’86, causing everyone to dump their homes for whatever they could get… one made money, most lost money or walked away from their mortgages just to keep their jobs. I got lucky and had PMI that accepted an underwater offer and wrote off the difference for me… cheaper than having me walk away from it. Long-winded-anecdotally I must agree, expectations have certainly changed.
A different world for sure, current potential home buyers can’t handle a 6% mortgage. What interest are they paying on their credit cards, I wonder.
Housing related: I bought 8 ft 2×4’s at Lowe’s yesterday, $4.65 each. I can’t imagine this bodes well for future affordability…