Reply to Feels like market is hitting a wall

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There's no inventory. People with 2-4 percent rates are not gonna sell and take on an 8 percent rate mortgage unless they absolutely have to, and the rates are scaring away potential first-time buyers (unless they are rich enough to pay cash). The market is essentially frozen.[/quote]

Buyers can always refinance later....[/quote]

But no one knows when later will be and *for me* the idea of moving and losing a ton of disposable income for ~10 years until rates go down and we can refinance isn’t prudent, especially with young kids. In an ideal world we would move to a bigger home in NW but there is no way we could justify losing our current interest rate for 600-1000 more sqft. Our house works for us - it’s smaller than what we want - but the space more or less fits our needs and paying a premium for more space seems stupid/wasteful. [/quote]

You already HAVE a house, what about those trying to buy their first house they have saved up for. It's really sad for those people.[/quote]
They can rent another year or two. I really wanted a house in 2006, I waited until 2009.[/quote]

I suppose that in 2006 people weren't required to learn basic math skills in high school either. My how times have changed.

Let's do some basic math then. For an $800K house at a 3-percent mortgage rate, principal and interest for a 30-year loan with 20% down ($160K) are a total of roughly $2700 a month.

In order to keep the $2700 monthly payment for principal and interest for the $800K house, at a 7-percent mortgage rate, the borrower has to put 50% down, or a total of $400K. This means that the borrower has to increase the downpayment by $240K.

Are you saying that it takes most households only 1 to 2 years to save $240K? I know math is sooooo hard isn't it?
[/quote]

Yes and easy to do. My cousin back when Interest rates high in 1980s got married. She and husband both had decent jobs. They moved to a tiny studio apt. in Queens NY in a dump area. They had two full time jobs. Both worked Saturday and Sunday at a catering hall. They saved a ton in two years.

When I got married I saved 60 percent of my income first two years. Not hard to do wife moved into my cheap apt I could afford in my income and 100 percent her check went to downpayment fund. I also saved 10 percent of my income. But my income only same as hers and paying bills

Your income doubles when you marry buy expenses stay the same of you moved into an existing place. Then if you both get second jobs and get some 5 percent interest income boom [/quote]

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