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(CNN) Mortgage rates drop for the ninth week in a row

Chomsky

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(CNN) Mortgage rates drop for the ninth week in a row
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The 30-year fixed-rate mortgage rate fell to an average of 6.61% in the week ending December 28, down from 6.67% the previous week, according to data from Freddie Mac released Thursday. A year ago, the average 30-year fixed-rate was 6.42%.
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Fed officials recently forecast a median of three rate cuts next year. If they happen, they’d likely put downward pressure on mortgage rates.
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With falling inflation, falling mortgage rates, and anticipated Fed Rate cuts, all while employment remains strong, we might be looking at a very good upcoming economic year.

My concern though, is that falling mortgage rates might push home prices yet higher.
 
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<SARC>See how well Americans are reacting due to the fact that Donald John Trump {BBHN} is going to be the official President of the United States of America in 2025!</SARC>
 
Supply and demand. If there are more buyers (read that speculators) than there are houses available, prices rise. Mortgage holders control the supply. The market is being artificially manipulated, just as it was in 2008.
 
Stealers Wheel said:
Supply and demand. If there are more buyers (read that speculators) than there are houses available, prices rise. Mortgage holders control the supply. The market is being artificially manipulated, just as it was in 2008.
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Uh, actually mortgage rates are a demand component. To wit, my statement!
 
1/3 of the homes purchased is with all cash. That's historically high and is probably a results of the homes not being owner occupied (rentals). With falling rates I see the purchase price going up and the value of these rentals going up. Bottom line: Biden may look like a winner but big business is the real winner.
 
Stealers Wheel said:
Supply and demand. If there are more buyers (read that speculators) than there are houses available, prices rise. Mortgage holders control the supply. The market is being artificially manipulated, just as it was in 2008.
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You will pry that 3000 square foot 4-3.5-2 from the empty nester Boomer's cold, dead fingers.
 
Chomsky said:
My concern though, is that falling mortgage rates might push home prices yet higher.
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Home prices were climbing as mortgage rates climbed too.

No amount of playing with interest rates will help anything. We have a massive shortage of affordable houses. We actually have a lot of homes...just not cheaper ones.

We just need to build more homes, especially cheaper homes and townhouses.

Unfortunately homeowners would rather be the last generation to buy homes as young adults than see home prices come down at all.
 
Let's turn potential homeowners into renters. Our renters. The Baby Boomers turned homeownership (with VA, FHA, and Fannie May) into a $34 trillion nest egg that they intend to pass on to the next generation of the middle class. We can't let that happen.
 

It doesn't really matter if an expensive home is built. It's another home in the pool.

My argument is condos, townhomes, and du-four-six plexes. You get a great deal more return on the land value. You just have to convince neighborhoods it is okay to build them.
 
I think prices right now are ready for a little drop. Lower interest rates will increase the universe of potential buyers at each price, but maybe we will see less 'stretching' for the highest amount you can afford to borrow. I can't see lower than 2% 30 year money anywhere on the horizon (although it could be brewing in a human animal interaction somewhere right now).
 
Stealers Wheel said:
The market is being artificially manipulated, just as it was in 2008.
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It isn't. In 2008 it was a speculative bubble.

Today there is an actual and genuine supply shortage. There is no crisis of handing out $500k mortgages to anyone who walks in the door. We just need to build more homes.
 
renting is pissing your money away. Build wealth ( and safe neighborhoods) with ownership
and when you get old and a moron President causes 20% inflation, you can reverse mortgage your home
 
Nomad4Ever said:
It isn't. In 2008 it was a speculative bubble.

Today there is an actual and genuine supply shortage. There is no crisis of handing out $500k mortgages to anyone who walks in the door. We just need to build more homes.
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So, predatory lending, backloaded balloon payments, to people who could not afford them had nothing to do with the housing crash of 2008?
 
anatta said:
renting is pissing your money away. Build wealth ( and safe neighborhoods) with ownership
and when you get old and a moron President causes 20% inflation, you can reverse mortgage your home
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I haven’t paid attention to inflation in Russia, has it been that bad?

How do they keep the lights on at the Russian Troll Farm with that level of inflation?
 
anatta said:
renting is pissing your money away. Build wealth ( and saf neighborhoods) with ownership
and when you get old and a moron President causes 20% inflation, you can reverse mortgage your home
Click to expand...
Just go buy a house, easy peezy! Nothing to it!

If you can't come up with at least 20% down, most lenders won't even look at you.
What do you mean you can't afford the down payment, the taxes, the maintenance costs of home upkeep? sucks to be you, right?
 

I am reminded of my time in Cambridge. All sorts loudly and righteously opined on the need for lower-income housing. Guess how their tune changed when it was pointed out that there were actually some pretty good spaces for that near where they lived. . .
 

I am a big fan of the YIMBY movement outside of their apparent aversion to green spaces.
 
Stealers Wheel said:
So, predatory lending, backloaded balloon payments, to people who could not afford them had nothing to do with the housing crash of 2008?
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It did.

But that isn't what is driving up home prices today.
 
Those rates suck. Thanks, Joe.
 
Stealers Wheel said:
Supply and demand. If there are more buyers (read that speculators) than there are houses available, prices rise. Mortgage holders control the supply. The market is being artificially manipulated, just as it was in 2008.
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Oklahoma has houses going up like dandelions after a summer rain. That was even during the higher interest rates. AFFORDABLE houses are the rare find. Most first-time buyers are looking at 30+ year old houses. The builder/developer looks at each lot with an eye out for making as much money per unit as possible.

I don't see a man behind the curtain, just a bunch of speculators out to make the most money per unit and high or low mortgage rate didn't seem to have that great an effect as inflation or wage stagnation....
 
2023 was a fantastic year for 401(k). 2024 will continue to be great.
 
anatta said:
renting is pissing your money away. Build wealth ( and safe neighborhoods) with ownership
and when you get old and a moron President causes 20% inflation, you can reverse mortgage your home
Click to expand...
Really??? Given how mortgage interest is compounded (daily) you really don't save your water. Throw in all the other costs and it isn't so great a deal.

I realize the Rabid Right has to create a false narrative since facts are not their friends but 20%??? Try just over 8%....

The MAGA mouthpieces are desperate now, corporate profit taking after the covid crash has dropped off, interest rates are falling, jerbs are being increased, and I read today the USofA is pumping world record amounts of oil, Biden is refilling the strategic reserve....

As far as reverse mortgage- you get highly deflated dollars after paying approx 3 times the initial price. Example- 1990 dollars are worth twice as much as 2020 greenbacks. The stock market would have served you better. Hell, gold would have done you better....
 
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