"The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.90% from 4.80% for loans with a 20% down payment. Applications to refinance a home loan, which have been falling steadily for months, dropped another 10% week to week. Mortgage applications to purchase a home fell 3% for the week and were 9% lower than the same week one year ago. Rising interest rates are crushing the mortgage market, as precious few homeowners can now benefit from a refinance and more potential homebuyers become priced out... 'The elevated average purchase loan size, and steeper 8% drop in FHA purchase applications, are both indicative of first-time buyers being disproportionately impacted by supply and affordability challenges,' added Kan. The drop in mortgage business is causing layoffs at companies like Movement Mortgage and Better.com. Mortgage companies had been on massive hiring sprees in the first year of the Covid pandemic, as interest rates set more than a dozen record lows and both refinance and purchase demand surged. https://www.msn.com/en-us/money/rea...wn-more-than-40-25-from-a-year-ago/ar-AAVUSJ4
I have a solution: a recession. The economy would slow down, no more inflation and interest rates would go back to being ridiculous.
I'm scared. More-so over the Democrat ignorance to the incoming socio-economic disaster. Its death by a million cuts, and it could be game over for left in Europe and the US. The right is taking big leads in some of these European countries. I never thought I'd see Marie Le Penn with a path to the French Presidency. I think the two major events possible at this time is a Chinese invasion of Taiwan or US Troops on the ground in Ukraine. They are desperately trying to sell the American Public the latter. Chemical attack? F-off Establishment Press.
Who is "desperately trying to sell the American Public" on sending our troops into Ukraine? That would be insanity. I've heard very few asvocate for that, and those few have not all been Democrats, so who is your "they" and can you link to some examples of this desperation? As for the housing market, that's cyclical, always has been. If you have a place you can rent out, now's the time, because when we're not buying due to higher rates, rental inventory becomes a hot commodity.
a tenth of a percent increase in rates is hardly a canary in the coal mine. People who were going to refinance largely already have refinanced and the housing shortage is naturally going to decrease the volume of purchases as most of the people wanting to sell, already have at peak prices.
Okay. I agree with you that we've got Republicans that want to push military action, and definitely weapons sales. Liz Cheney, Mitt Romney, and other establishment A-Holes. The mainstream is grooming us for war. Even Fox goes after Trump when it's in their interest. Also, I'm reading between the lines. I saw it in 2002 and 2003. A chemical attack is the read line, right? We have to do something? This subliminal messaging repeated over-and-over, and it's everywhere. On every channel. This is more a problem with the establishment controlling the message, and they don't like Trump. And if you're not seeing it, I don't know what to tell you. I guess that's why I was able to predict this invasion under a Biden administration, and Ds were all shocked. Taiwan is next. I'm betting on the cycle has been broken. And is the seesaw effect of low inventory high rent and High inventory low rent really a cycle? Forbes back in February was saying the housing market began a 10-year-upward-move. At a certain point, you just can't keep going up, particularly with inflation. So prices are going to come down. This is why I believed Forbes was providing a poor analysis of the situation back in February, and most outlets predicted a sunny outlook when Biden took office. It's all F-ing BS. https://www.forbes.com/sites/joshua...an-a-new-10-year-upward-move/?sh=3298391a6785 Now Forbes has backed off on all their claims in this article date 4/3/22. I'm an investor. This has been the easiest market to predict. The rule I learned starting out was to not let the news influence my decisions, because they are often provide extreme predictions that are emotionally manipulative on investors. This is the game. https://www.forbes.com/advisor/mortgages/housing-market-predictions/
"The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.90% from 4.80%, with points decreasing to 0.53 from 0.56 (including the origination fee) for loans with a 20% down payment. That rate was just 3.36% one year ago. That is the fourth consecutive week of increases." I probably should have put this part in the OP. The rise is at the fastest pace in decades. The problem is not only about the interest rate, but also the rise in inflation that's putting extreme pressure on renters and homeowners. Oh yeah. Some Democrats are still scared of Covid-19 and were on the brink of WW3. https://www.mortgagenewsdaily.com/markets/mortgage-rates-03222022
Putin started gearing up for this invasion the minute Trump lost the 2020 election. His biggest goal is the dismantling of NATO, something Trump was helpful with. If he'd won reelection, he likely would have pulled us out of NATO by now, which would bring the organization to an effective end. But when Trump lost, Putin had to go to "plan B," which is to acquire by force as many of his neighboring nations as possible in order to keep them from joining NATO like the three Balkan states did several years ago. I admit I am missing these subliminal messages you're talking about. Could you provide an example or two? Thanks. The war is going to continue playing havoc with economies, including ours. Ukrainian grain will not be harvested much this year, which will lead to famines in countries that get most of their grain from Ukraine, and higher food prices world wide. Ukraine is one of the biggest suppliers in the world.
Rates are still pretty low. My interest rate is 5% and has been since the day I closed pro-covid, pre WW3. My rate will continue to be 5% until the day I pay it off due to a combination of factors that have my balance too low to refinance. I got a really good deal on a fixer upper and put a ton down so I have never been eligible for a refi because lenders don't want to do low balance refi's and home equity rates are generally at or above what I am paying to backdoor a way through. Anyway, I am not sure where you think this "extreme pressure" on homeowners is, but I'm not feeling any.
