Anonymous
Post 02/13/2021 21:26     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:Honest question, but why would lower rates mean more demand? Wouldn't the ppl in the market for a house stay the same, they can just afford more? All these ppl looking for a home, would they not be looking if rates didn't drop?


Cost always matter at the margin.
Anonymous
Post 02/13/2021 21:15     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:Honest question, but why would lower rates mean more demand? Wouldn't the ppl in the market for a house stay the same, they can just afford more? All these ppl looking for a home, would they not be looking if rates didn't drop?


I know people desperate to buy who literally can't afford to regardless - so rates don't matter if you don't have the income or down payment to afford the home.
Anonymous
Post 02/13/2021 21:12     Subject: What is truly going on with the DC area real estate market, please explain?
Honest question, but why would lower rates mean more demand? Wouldn't the ppl in the market for a house stay the same, they can just afford more? All these ppl looking for a home, would they not be looking if rates didn't drop?
Anonymous
Post 02/13/2021 21:08     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.


If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient.


Not really, the average mortgage rates in '16,'17 and '18 were 3.7, 4 and 4.5 percent respectively. The last six months is about 2.8%. It's an enormous difference from an affordability perspective.


Yes really. You’re indicating a mortgage rate a quarter to half a percent higher than the average rate (for 30 years might I add) in 2016/2017. That type of higher rate comes for a reason - either you added points, didn’t have a acceptable down payment or terrible credit. Buyers aren’t penalized for no reason.


I'm not talking about myself, I'm talking about the average rate from 17/18, which was 4.25%.


We have 800 credit scores and had a "low" rate of 4.15% in 2018 so I agree with you.
Anonymous
Post 02/13/2021 21:07     Subject: Re:What is truly going on with the DC area real estate market, please explain?
Gilded city with recession proof jobs and poor people being pushed out.
Anonymous
Post 02/13/2021 20:54     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:The mortgage rate falling since 2016 did not make high price homes more affordable.

We lost one million mortgage write off and SALT so a wash at best


The 1 million write off and SALT is not a significant player in this area.

Taxes are relatively low and most houses cost under $1M, which means an average mortgage balance probably right around $750K.
Anonymous
Post 02/13/2021 20:53     Subject: What is truly going on with the DC area real estate market, please explain?
The mortgage rate falling since 2016 did not make high price homes more affordable.

We lost one million mortgage write off and SALT so a wash at best
Anonymous
Post 02/13/2021 20:49     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.


If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient.


Not really, the average mortgage rates in '16,'17 and '18 were 3.7, 4 and 4.5 percent respectively. The last six months is about 2.8%. It's an enormous difference from an affordability perspective.


Yes really. You’re indicating a mortgage rate a quarter to half a percent higher than the average rate (for 30 years might I add) in 2016/2017. That type of higher rate comes for a reason - either you added points, didn’t have a acceptable down payment or terrible credit. Buyers aren’t penalized for no reason.


I'm not talking about myself, I'm talking about the average rate from 17/18, which was 4.25%.
Anonymous
Post 02/13/2021 20:47     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.


If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient.


Not really, the average mortgage rates in '16,'17 and '18 were 3.7, 4 and 4.5 percent respectively. The last six months is about 2.8%. It's an enormous difference from an affordability perspective.


Yes really. You’re indicating a mortgage rate a quarter to half a percent higher than the average rate (for 30 years might I add) in 2016/2017. That type of higher rate comes for a reason - either you added points, didn’t have a acceptable down payment or terrible credit. Buyers aren’t penalized for no reason.
Anonymous
Post 02/13/2021 20:42     Subject: What is truly going on with the DC area real estate market, please explain?
And to add, it's important to remember that rates were hovering in that 4% +/- range since the early 2010s.

The recent drop in the last year is the first time they've really broken down like this.
Anonymous
Post 02/13/2021 20:38     Subject: What is truly going on with the DC area real estate market, please explain?
Yeah Potomac dc is not a thing. Palisades?
Anonymous
Post 02/13/2021 20:37     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.


If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient.


Not really, the average mortgage rates in '16,'17 and '18 were 3.7, 4 and 4.5 percent respectively. The last six months is about 2.8%. It's an enormous difference from an affordability perspective.
Anonymous
Post 02/13/2021 20:35     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


I agree with this. I don't think rates are as big a player as everyone is saying. I'd be curious how much demand has actually gone up, vs supply just being terribly low.
Anonymous
Post 02/13/2021 20:31     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.


If you were qualifying for a mortgage rate of 4.25% in 2016/7 your credit was terrible and/or your down payment was insufficient.
Anonymous
Post 02/13/2021 20:28     Subject: What is truly going on with the DC area real estate market, please explain?
Anonymous wrote:
Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.


4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.


Not that crazy, but going from say 4.25% to 3% allows one to afford about 17% more mortgage on the same payment. That's quite a lot.