[quote=deadzone][quote=XBoxBoy][quote=deadzone]30 year fixed over 5% today according to Mortgage News Daily.[/quote]
When the pandemic first hit I thought, “Boy, that will clobber the housing market.” After all, the economy was likely to go into recession, and people would become cautious. No way people would start buying houses like crazy. Of course, I was about as wrong as I could be.
A year ago, when interest rates started rising, I thought, “Boy, if interest rates get to 5%, that will cause the housing market to slam on the brakes. People won’t be able to afford these crazy prices with 5% loans.” Yet here we are with a housing market that is still rocking. Inventory in the area I watch (La Jolla) has dropped in the last couple of weeks from its already incredibly low level. So it seems I was wrong about 5% interest rates slowing the market.
Now I don’t know what to think. It seems hard to imagine that the pace of price increases will continue. But I’ve thought that for a long time and prices just keep going up at an astounding rate. Inflation will help justify some of the increases, but until inventory increases a lot I doubt we see price drops. Then again, I’ve been wrong before, maybe I am again.[/quote]
Prices went up during Covid primarily because the Fed printed over 4 trillion dollars and doubled their balance sheet in less than 2 years. If the Fed follows through with their threats to tighten, prices have nowhere to go but down.[/quote]
Darn I missed the bonfire where they torched that 4 trillion
1.65m in Mira Mesa. lolol[/quote]
Something is really hinky on this one. Looked at sale history-including pattern of price changes, who owns, tax record.. and records of people involved… Not posting names – but if you know where to look. Names are unusual enough for uniqueness.
Not really. Owner took over house from parents who are still in area. Looks like owner got himself in a bit of trouble several years ago but now has career with high level position in biotech. Its first time house was on market. Listed at 1.3 and bid up to current level. Maybe you know something I dont?
Prop 13 in the form and name of historical low 30-year fixed mortgage rate — for those that are benefitting from it, perhaps even more profoundly impactful, since it’s likely their biggest overhead cost, mortgage, is FIXED for the next 28-30 years.
But taxes have long been basically fixed. In a declining rate environment people refinance or moved and could get another sub 3% loan. With those no longer available many with them will stay put while inflation does the heavy lifting. Higher rates hurt as much as they help the balance of supply and demand
