Mortgage rates

[Concrete Helmet]

we might be able to ... may be able to rent it out for a while until the rates come down
houses here in this neighborhood in Denver don't stay on the market for more than three or four weeks.
but... with the latest rate hike(s), don't know for sure.

You have to realize that some of the whopping 1.2% price decline we've seen over the last 2 months is seasonal.....spring is like opening day in hunting season for buyers and Powell has already signaled the end of rate hikes. Plus like you just experienced the lending market is only going to get more creative with incentives and buydowns. If you noticed rates dropped this week or last week ahead to adjust for what they knew was coming....hell were still closing some 1st refi's and a ton of 2nd's in the 5% zone for 2 of the local credit unions.

Think of it this way banks would fold if they're not lending and that ain't going to happen. I truly believe we'll see purchase money mortgages and refi's in the 4% range by April but that's just my opinion. It also doesn't mean the price of your house will instantly skyrocket either but rather make the healthy buying season adjustment.

 

[Concrete Helmet]

MSN

www.msn.com

Purchases have been picking up again lately...Weird thing is they're all really big(over 1 million) or really small but nothing in between(400-700K) I'm not sure if the stuff on the lower end was just marked down enough for people to jump on it but it's been 3/1 owner occupied over investor ....still doing a sh!t ton of HELOC's...

 

[FireFoley]

MSN

www.msn.com

Purchases have been picking up again lately...Weird thing is they're all really big(over 1 million) or really small but nothing in between(400-700K) I'm not sure if the stuff on the lower end was just marked down enough for people to jump on it but it's been 3/1 owner occupied over investor ....still doing a sh!t ton of HELOC's...

to your point?

Buyers need a six-figure income to afford a 'typical' home, report finds. Here's how to reduce the cost

In October, home buyers needed to earn $107,281 to afford the median monthly mortgage payment for a "typical home." Here's how to reduce the cost.

www.cnbc.com

 

[Concrete Helmet]

to your point?

Buyers need a six-figure income to afford a 'typical' home, report finds. Here's how to reduce the cost

In October, home buyers needed to earn $107,281 to afford the median monthly mortgage payment for a "typical home." Here's how to reduce the cost.

www.cnbc.com

Yeah it's getting tighter and tighter to get in unless you have some bankroll stashed. I think most lenders are going to start pushing ARM's bigtime and you'll see the gov make a push for DPA's on the starter stuff to try and squeeze a few in through the cracks. I also think some middle aged and older homeowners that are currently in the $450-750k range will not be moving around as much over the next few years either.

 

[Gatordiddy]

Weird thing is they're all really big(over 1 million)

We're closing today (Tuesday) on the house in Texas. The house in Colorado goes on the market in about 10-14 days.
The realtor is listing it at $1.2m, so hopefully that part of the market is still viable.
Inventory is still not that high in the Denver metro area, so we may be ok in getting it sold.
The last two houses that sold in our neighborhood - one sold in 11 days and the other in 19.
So...

 

[FireFoley]

MSN

www.msn.com

Purchases have been picking up again lately...Weird thing is they're all really big(over 1 million) or really small but nothing in between(400-700K) I'm not sure if the stuff on the lower end was just marked down enough for people to jump on it but it's been 3/1 owner occupied over investor ....still doing a sh!t ton of HELOC's...

Investors' home purchases drop 30% as price increases slow down

Investor home purchases dropped just over 30% in the third quarter of this year compared with the same period last year, according to Redfin.

www.cnbc.com

 

[GatorCatsi]

We'll never learn.

U.S. Government to Backstop Mortgages Above $1 Million in High-Cost Areas

The scheduled increase in loan limits reflects a rise in home prices and stokes debate over Washington’s role in home lending.

www.wsj.com

 

[Bernardo de la Paz]

We'll never learn.

U.S. Government to Backstop Mortgages Above $1 Million in High-Cost Areas

The scheduled increase in loan limits reflects a rise in home prices and stokes debate over Washington’s role in home lending.

www.wsj.com

This is really a story about inflation, not about the government doing anything new.

 

[FireFoley]

A friend of mine just sent me this. I am putting it here FYI only.

7 Florida Cities That Could Be Headed for a Housing Crisis

 

[Mr2Bits]

Sounds like this is happening to everyone but my homeowner's insurance just went from $2100 a year to $5500. A good friends went from 4k to 16k, I really wish Desantis would help put some regulation on the hikes otherwise a lot of families are going to be forced out of their houses simply due to unaffordable insurance.

 

[CDGator]

Sounds like this is happening to everyone but my homeowner's insurance just went from $2100 a year to $5500. A good friends went from 4k to 16k, I really wish Desantis would help put some regulation on the hikes otherwise a lot of families are going to be forced out of their houses simply due to unaffordable insurance.

That's insane.

 

[soflagator]

Sounds like this is happening to everyone but my homeowner's insurance just went from $2100 a year to $5500. A good friends went from 4k to 16k, I really wish Desantis would help put some regulation on the hikes otherwise a lot of families are going to be forced out of their houses simply due to unaffordable insurance.

I think the pressure may come from the lenders themselves. It will be interesting to see how the banks handle this go around of cooling and delinquencies. It’s not 2007-2009 anymore where inflation is in line, rates are historically low and there are droves of next generation buyers coming into the market to gobble up inventory. The banks were almost incentivized to foreclose then, even if it meant parking a physical asset on their books for a little while until things were good again. The average person who may now be running into problems likely bought extremely high and over extended. Or they’re what Crete has described seeing with Heloc repeat offenders. Trying to unwind that with the current situation would be nearly impossible, and that’s not even accounting for this new phenomenon of millennials staying at home with parents. My guess is they’ll be bending over backwards to assist homeowners who start getting dicey.

Also, my experience with homeowners insurance has been that this recent trend of jacking up rates has been more about taking a stab to see if they can get traction. Our insurance company(who we actually know personally) took a shot with us last May and assumed we’d be ok with it. I declined, shopped and was able to find a policy at a roughly 15% increase.

 

[Mr2Bits]

I think the pressure may come from the lenders themselves. It will be interesting to see how the banks handle this go around of cooling and delinquencies. It’s not 2007-2009 anymore where inflation is in line, rates are historically low and there are droves of next generation buyers coming into the market to gobble up inventory. The banks were almost incentivized to foreclose then, even if it meant parking a physical asset on their books for a little while until things were good again. The average person who may now be running into problems likely bought extremely high and over extended. Or they’re what Crete has described seeing with Heloc repeat offenders. Trying to unwind that with the current situation would be nearly impossible, and that’s not even accounting for this new phenomenon of millennials staying at home with parents. My guess is they’ll be bending over backwards to assist homeowners who start getting dicey.

Also, my experience with homeowners insurance has been that this recent trend of jacking up rates has been more about taking a stab to see if they can get traction. Our insurance company(who we actually know personally) took a shot with us last May and assumed we’d be ok with it. I declined, shopped and was able to find a policy at a roughly 15% increase.

Yea, Im going to have my agent shop it around. Needless to say, I was floored by them even attempting such a drastic increase. Ill dump it to Citizens and pray I never have to deal with anything if I have to.

 

[Concrete Helmet]

The other part is the effect on landlords. Mine has doubled over the last 2 years at one of my rentals and with the tax increase from this last year my mortgage just shot up $200 a month due to the escrows.....if it increases this year the same plus the special assestment that the city is throwing into the taxes.....I'm out. The bad part is I just renewed the lease and increased the rent $120 a month last October thing it would keep me above the mortgage payment...I'm now $100 behind and I put a 3% auto renewal per year in the new lease....The only other option would be to pay it off and collect about $1000 a month after taxes and insurance. With almost 300K in equity I don't know that I want to part with cash from savings or from part of my retirement accounts to do that....

 

[BMF]

Sounds like this is happening to everyone but my homeowner's insurance just went from $2100 a year to $5500. A good friends went from 4k to 16k, I really wish Desantis would help put some regulation on the hikes otherwise a lot of families are going to be forced out of their houses simply due to unaffordable insurance.

Mine went up $74/month - to $3300/year. Pretty big jump (over 20%).

What can DeSantis do? Or the state legislature? If there is some sort of regulation, these companies will just pull out - like USAA did.

 

[soflagator]

Mine went up $74/month - to $3300/year. Pretty big jump (over 20%).

What can DeSantis do? Or the state legislature? If there is some sort of regulation, these companies will just pull out - like USAA did.

I’ll be completely honest. None of this was an issue until about a year ago when you moved to Florida. You’re still Top-5 in my book, but facts are facts.

 

[Gatordiddy]

I’ll be completely honest. None of this was an issue until about a year ago when you moved to Florida. You’re still Top-5 in my book, but facts are facts.

He’s going to have to know who the other four are to see where he stands with you before he responds. He’ll have to think twice about getting on your ‘list’.

 

[FireFoley]

Nothing more apparent that people buy monthly payments and not the price of the house.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiLq7aonqn9AhWJRjABHQByAKsQvOMEKAB6BAgtEAE&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2023-02-22%2Fus-home-purchase-applications-drop-to-28-year-low-as-rates-jump&usg=AOvVaw2-Gz3uB1eZPMm4-NSgmUz7

 

[Gatordiddy]

Nothing more apparent that people buy monthly payments and not the price of the house.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiLq7aonqn9AhWJRjABHQByAKsQvOMEKAB6BAgtEAE&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2023-02-22%2Fus-home-purchase-applications-drop-to-28-year-low-as-rates-jump&usg=AOvVaw2-Gz3uB1eZPMm4-NSgmUz7

That’s great - we put our house on the market about 10 days ago- this is not good

 

[Concrete Helmet]

That’s great - we put our house on the market about 10 days ago- this is not good

Most of it's DTI issues on starter houses although rates will dampen the overall market.....The bigger problem as I see it is the geopolitical situation and the media hides it but who wants a new house when WW3 may be on our doorstep...until Ukraine is resolved the entire economy is going to suffer.