So when’s the housing bubble bursting?
- Thread starter Dr. Truth
- Start date
Last edited:
Keep paying someone else mortgage for life you stupid bih
Her monthly payment went up $400 in 3 years? I guess she'd be better off renting, oh wait...
Renewing your mortgage? Planning is key amid polarizing challenges, say Vancouver Island brokers
Mortgage brokers on Vancouver Island say many clients going through renewals are feeling stressed by their future financial picture. And some think planning is key in a polarizing housing market where the Bank of Canada rate brings trickle down effects.
Price per square foot of average home up by half in just five years
Buyers now need to pay 52.7 percent more than they would have in May 2019 for the same sized home, with a surge in working from home partly to blame.
'A renter's dream': Converted office building providing options for Calgary renters
Calgary’s first office-to-residential building conversion project under the city’s incentive program has opened to residents, providing some more options for renters in the downtown core.
'Buyers are really excited': Lethbridge realtor reacts to interest rate cut by Bank of Canada
Lethbridge homebuyers received some good news Wednesday when the Bank of Canada lowered its key interest rate for the first time in four years.
What the Bank of Canada rate cut means for mortgages, consumer loans and investments
The Bank of Canada has lowered its key interest rate by a quarter of a percentage point to 4.75 per cent. Here's what it could mean for your finances.
Mortgage Rates Rise, Over 7% since Early April, Buyers Remain on Strike, Housing Market Still Frozen as Prices Are Too High
by Wolf Richter • Jun 5, 2024 • 7 Comments
Stuck with a 6% or 7% mortgage that was supposed to be refinanced? The Fed is counting on them to help bring inflation down.
By Wolf Richter for WOLF STREET.
The over-7% mortgage rates seem to have become a fixture in the housing market. The average conforming 30-year fixed mortgage rate edged up to 7.07% in the latest week, and has now been above 7% since early April, according to the Mortgage Bankers Association today. During Rate-Cut-Mania, the average mortgage rate had dropped to 6.76% at the low point in early January.These mortgage rates are not high compared to the pre-QE era. From 1970 through 2001, mortgage rates ranged from 7% to 18%. What was different then that allowed those rates to function were the lower home prices. When mortgage rates dropped below 7% in 2002 and eventually as low as 5.5% in 2005, they fueled Housing Bubble I, which led to the Housing Bust from 2006-2012. So these 7% rates are fairly healthy rates:
Stuck with a 6% or 7% mortgage that was supposed to be refinanced? Mortgage rates have been above 6% since September 2022. But no problem, the real-estate industry has been telling homebuyers that they should buy now even at these rates because they will be able to refinance at a much lower rate shortly, after the Fed starts slashing interest rates.
Meanwhile, there still haven’t been any slashed rates. Instead, recalcitrant inflation in the US has caused the Fed to backpedal on the three rate cuts in 2024 that it has seen as possible in December 2023. The economy is humming along, the labor market hasn’t yet collapsed or whatever, and there really isn’t anything “forcing” the Fed to cut rates.
These new homeowners may feel kind of stuck with their 6% and 7% mortgage rates, and their big mortgage payments that may force them to cut back spending on other stuff. But the Fed is counting on them. They’re one of the official transmission channels of Fed policy, via higher interest rates to lower demand in the economy, and thereby to lower inflation. So they’re carrying the Fed’s water in trying to get inflation down.
Home sales still frozen; prices are too high.
Mortgage applications to purchase a home dropped further in the latest reporting week and are just a hair above the record lows in the data going back to 1995. The records were set in November 2023 and February 2024. The mini-spike of Rate-Cut Mania has by now completely worn off.How far mortgage applications to purchase a home have plunged from the same week in the prior years:
- From 2023: -13%
- From 2022: -36%
- From 2021: -46%
- From 2019: -48%
Volume of closed sales of existing homes in April had dropped by 26% from April 2022, by 30% from April 2021, and by 24% from April 2019.
Volume of pending sales in April, an indicator of closed sales in May and later, dropped 7.7% from the prior month and by 7.4% from the already beaten down levels a year ago, according to the National Association of Realtors last week.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” NAR said, adding of course the rate-cut thingy that the industry has been hanging out there for two years: “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
Supply is already increasing. Active listings in May rose to the highest for any may since 2020, according to Realtor.com:
Price reduction rose to the highest for any May in the data by Realtor.com going back to 2017. Price cuts are a first sign that the housing market may be thawing out just a little, but it will take a lot more than cutting exaggerated asking prices a little bit.
And for now, the housing market remains frozen because prices are still too high, keeing many potential buyers on strike. And some of them have figured out that they can rent a nice house for a lot less on a monthly basis than buying at these sky-high prices:
Mortgage applications to refinance a home without cash-out have nearly vanished. The refis that are still taking place are mostly cash-out refis.
In the latest reporting week, total refis dropped further and were down by 85% from the same week in 2021 and by 67% from the same week in 2019, having squiggled along historic lows since August 2022.
Refis are dependent on low and falling mortgage rates. They had seen a historic boom during the 2.5%-3.0% mortgage-rate era, and in the months as mortgage rates began to rise in the fall of 2021 and early 2022, after the Fed started talking about rate hikes, the end of QE, and eventually QT. And then refis died.
Average asking rental price in Canada reaches record high: report
The average asking rental price in Canada surpassed $2,200 to reach a record high in May, according to a new report.
At long last, an interest rate cut. What comes next?
On Wednesday the Bank of Canada lowered its key interest rate for the first time in four years, after months spent at a 20-plus year high. The cut was just a quarter-point, but it could be a signal that easier economic times are on the way for millions of Canadians struggling with servicing...
thebigstorypodcast.ca
HOA’s are the biggest scam going next to car insurance
Banks and mortgage lenders originated just 1,277,899 residential home loans in Q1 2024, down from 1,371,344 in Q4 2023, per ATTOM.
This total was also below the 1,343,010 loans issued a year earlier, and nowhere near the cycle high of 4,165,204 loans in Q1 2021.
In dollar terms, $405.6B was doled out in Q1, compared to the $1.29T peak quarter seen three years ago.
Residential mortgage lending has now fallen to its lowest point since the year 2000, with activity down nearly 70% in just three years.
We've also seen mortgage lending decline in 11 of the past 12 quarters (the only increase was the second quarter of last year).
Refis continue to be a weak spot, with just 490,953 issued in Q1 2024, down from 500,323 in Q4 2023, but up 11.4% from a year earlier thanks to a short-lived rise in 2023.
However, refis are still down a whopping 82.1% from their peak quarterly total of 2,742,371 in early 2021 when mortgage rates were being offered below 3%
The homeowner mutiny leaving Florida cities defenseless against hurricanes
The government is refusing to restore eroded beaches in coastal Florida counties unless homeowners agree to one condition: public access.
grist.org
Vancouver rentals still most expensive in Canada
The price of the average one bedroom rental in Vancouver is still the most expensive place in Canada, according to rentals.ca.
vancouver.citynews.ca
Vancouver renters spend 60% of monthly income on housing
A new report is shedding light on just how much renters are having to fork out for homes in Metro Vancouver.
vancouver.citynews.ca
B.C. to cap rent hikes for Vancouver's Downtown Eastside
The B.C. government has introduced legislation that would allow the City of Vancouver to limit rent increases in its poorest neighbourhood.
vancouver.citynews.ca
Sydney Sweeney Buys a $13.5M Retreat in the Florida Keys
Sydney Sweeney recently splashed out $13.5M for a mansion in Summerland Key. It's the priciest purchase in the town over the past six months.
www.realtor.com
NBA Star Ben Simmons Sells Hidden Hills Estate for $12M
Brooklyn Nets guard tried to sell his modern farmhouse for $23M, but took it to auction instead.
therealdeal.com
Media Mogul Byron Allen Aims To Sell Two Beverly Hills Homes Worth a Combined $40M
The film and television producer has listed two pricey properties in Southern California. Here's a look at both.
www.realtor.com
NY Jets QB Tyrod Taylor Lists Georgia Mansion—With a Must-See Sneaker Closet—for $5M
Tyrod Taylor's Georgia property is seriously impressive. Beyond a dizzying list of perks, the home has a showstopping sneaker closet.
www.realtor.com
Ex-NFL Star Antonio Brown Has Filed for Bankruptcy—So What Happens to His Homes?
Antonio Brown owes nearly $3 million to at least eight creditors. Will he be able to keep his fabulous Florida homes?
www.realtor.com
Ontario man considers selling house before mortgage payments rise $2,000, even after interest rate cut
An Ontario man says he’s still considering selling his house, despite this week’s interest rate cut, with his mortgage payments set to leap over $2,000 next month.
Americans have never felt worse about the housing market
A whopping 86% of consumers said it's a bad time to buy a home, according to a new Fannie Mae survey
qz.com
American renters are scared renting will cost them for a long time
While renters are staying put amid high mortgage rates and soaring housing prices, many are eyeing homeownership
qz.com
The 5 states with the most housing inventory — and the 5 states with the least
The market has been difficult for people looking to relocate — but there are some places where people may find more luck than others
qz.com
Saudi Arabia is trying to build the largest linear city ever. It's a visionary but flawed concept, urban planners say.
Architects, urban planners, and academics spoke to Business Insider about whether a line really is the best shape for a city.
www.businessinsider.com
A worker-owned co-op is giving vacant homes — and people — a second chance
The worker-owned business employs a diverse workforce, which has first dibs on every home it rehabs.
www.thebaltimorebanner.com
Poppleton residents want a say after city ends redevelopment deal
West Baltimore residents talk about what they’d like to see in Poppleton, now that the city is terminating its agreement with a New York developer that has struggled to build there.
www.thebaltimorebanner.com
Baltimore and Maryland homes - renting, buying, selling, renovating, home values- The Baltimore Banner
News about home values, housing affordability, price trends, and renting, buying or selling homes in Baltimore and Maryland, from the Baltimore Banner
www.thebaltimorebanner.com
Baltimore forgot to cash his check. Then it sold his home at tax sale.
In 2021, Frederick Williams wrote the city of Baltimore a check for more than $13,000 to pay off outstanding property taxes as part of his purchase of a home. What he got was an almost three-year legal odyssey that nearly cost him the house.
Howard County expanding homebuyer down payment assistance, rehab loan progams
Howard County is expanding two programs meant to provide relief to homebuyers and residents.
Commentary: Unpaid water bills could still lead to Baltimore evictions
Legislation would put renters at risk by removing safeguards that protect non-owner-occupied properties from city tax sale foreclosures for unpaid water debt, an economic justice advocate and a public water advocate say.
Commentary: Marylanders facing foreclosure can take steps to save their homes
Maryland homeowners at risk of foreclosure can take steps to save their homes andget assistance from housing counseling agencies, a Baltimore real estate broker and credit repair specialist says.
That unpaid water bill is REAL.Baltimore forgot to cash his check. Then it sold his home at tax sale.
In 2021, Frederick Williams wrote the city of Baltimore a check for more than $13,000 to pay off outstanding property taxes as part of his purchase of a home. What he got was an almost three-year legal odyssey that nearly cost him the house.www.thebaltimorebanner.com
Howard County expanding homebuyer down payment assistance, rehab loan progams
Howard County is expanding two programs meant to provide relief to homebuyers and residents.
Commentary: Unpaid water bills could still lead to Baltimore evictions
Legislation would put renters at risk by removing safeguards that protect non-owner-occupied properties from city tax sale foreclosures for unpaid water debt, an economic justice advocate and a public water advocate say.
Commentary: Marylanders facing foreclosure can take steps to save their homes
Maryland homeowners at risk of foreclosure can take steps to save their homes andget assistance from housing counseling agencies, a Baltimore real estate broker and credit repair specialist says.
In DC, if the water bill gets to $600 unpaid, the city will put a tax lien on your house.
Yup. I’m renting my condo out right now, but it’s one and done for me. I’m using a property management company and they told me I need to keep the water bill in my name because if you depend on the tenant to pay it and they don’t you SOL. Let the tenant reimburse you each month and yeah that’s not going well so yeah it’s a wrap being a landlord in DC for me.
Unpaid water bills is something people don’t talk about but it’s one of the many ways white folks are able to sneak in and buy a house that’s being auctioned off for unpaid water bills.
My homeboy neighbor, who is white, bought his crib that way. Dude cool ass hell and grows weed, but yup.
My homeboy neighbor, who is white, bought his crib that way. Dude cool ass hell and grows weed, but yup.
Similar threads
