Let’s be real, if rates are cut significantly housing will do another +20-30%

[Anonymous]

Bare careful what you wish for.

[Anonymous]

Well, I own a home with a 2% mortgage…so I’ll wish for it.

[Anonymous]

Then monthly payments would basically remain the same. Low or high interest rates, no one is able to get sub 3k monthly payment anymore.

[Anonymous]

Anonymous wrote:Well, I own a home with a 2% mortgage…so I’ll wish for it.

Me too but it’s a starter home…

[Anonymous]

Keep dreaming. While I’d love this as the owner of two properties I can’t see it happening. Prices are insanely high already. If anything, rates will stay near current levels and prices will start to drop. I feel bad for people who were persuaded to take our adjustable rate loans with delusions of lower rates. Also, people have been encouraged to borrow from 401ks. All around sad.

[Anonymous]

Anonymous wrote:Keep dreaming. While I’d love this as the owner of two properties I can’t see it happening. Prices are insanely high already. If anything, rates will stay near current levels and prices will start to drop. I feel bad for people who were persuaded to take our adjustable rate loans with delusions of lower rates. Also, people have been encouraged to borrow from 401ks. All around sad.

The government prints money like crazy though, house prices have increased by 30% since Covid but our dollar has lost 30% of its value overall. It’s basically just inflation.

CPI:
900k in 2024 = 740k in 2019

[Anonymous]

Anonymous wrote:

Anonymous wrote:Well, I own a home with a 2% mortgage…so I’ll wish for it.

Me too but it’s a starter home…

You should start wrapping your head around the concept that it is *not* a starter home.

[Anonymous]

If rates are cut significantly - there will be an influx of supply too from people who are locked in right now. So who knows how that plays out.

[Anonymous]

Nobody is talking about cutting rates right now, so you needn't worry. If anything the Fed may raise rates again if inflation remains stubbornly above the 2% target.

[Anonymous]

Anonymous wrote:If rates are cut significantly - there will be an influx of supply too from people who are locked in right now. So who knows how that plays out.

This.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If rates are cut significantly - there will be an influx of supply too from people who are locked in right now. So who knows how that plays out.

This.

People who are only selling because rates finally dropped enough have to buy something, no? Which means demand is still up. Keeping prices up.

I don't see a happy way out of this situation for people looking to buy or wanting to trade up and have the golden handcuffs. It'll be a long, sluggish slog for the market to reach some sort of new equilibrium. Think in terms of years and years.

[Anonymous]

Let's be real -- no one is predicting that rates are going to be cut significantly, so this thread is pointless.

[Anonymous]

Rates aren't going down, sweetie pie.

[Anonymous]

Haven't we been led to believe that many buyers in the highly desirable areas are "all-cash"? Thus, interest rates don't matter for that large group of buyers.

[Anonymous]

Anonymous wrote:Haven't we been led to believe that many buyers in the highly desirable areas are "all-cash"? Thus, interest rates don't matter for that large group of buyers.

true. we've lost out on several homes because someone offered all cash.