The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar

Yea. Banks are making out like criminals and it will eat into the profits of builders and resellers but with such a high demand for homes they may be willing to settle for slightly less margin rate to move more houses for dollars. Fed doesnt need the rates as high as they are.

 

Wish I could say it was anything beyond luck, but locking in 2.9% two years ago is one of the best things I've ever done

 

I’d be fine with high interest rates if the prices took a sharp dive, but here in South Florida they haven’t let up.

 

Off-Topic, but interest rates won't be the near the problem in Florida that homeowner insurance will be. If you have a mortgage, homeowner insurance is required.

Home Insurance Is So High in This Florida Town, Residents Are Leaving

 

Patience my friend, It takes awhile for interest rates to ripple through the market. The rates have shot up so fast that the market hasnt adjusted to it yet. The buydown is a bandaid, investors are banking on the rates being this high for a short time. The back breaker historically has been a fed rate around 6%, the economy usually breaks at that point. Thats why the fed has stopped hiking rates to see how the CPI and Inflation rate does this qtr. If rates stay this high until 2025, prices will drop regardless because demand will drop (its unaffordable).

 

Now it's really sinking in just how insanely low rates have been the past few years. I remember buying my first house in 2002 for 6.375%, and at the time that was considered a decent rate by historical standards. I refi'd my current house with a 2.6% in 2020, and feel like I stole that one. Today it's worth nearly 4x what I owe. That's likely the last mortgage I'll ever need to carry.

8% seems high only by recent memory. Googling tells me the average mortgage rate over the past 50 years was actually 7.74%. The low rates we've had the past several years were largely a side effect of Fed policy to stimulate the economy.

 

Nailed it.

CRE is also taking a hit...among all sectors (office, retails, even industrial). Transactions have plummeted.

 

The real downside to this is that with less competition, the corporations will continue to snap up homes with cash offers to turn into rental properties, making home ownership even further out of reach for a lot of people.

 

live been looking in NC mountains, too… maybe we’ll be neighbors someday.

 

Me too.
But mostly Ga mountains.
Look for the Nikki Haley sign in my yard.

 

I spit out my coffee reading this...lol. Good stuff War! I'm more in commercial, but be patient, you will probably find a good deal over the next few years. Things can change, but the price drop will eventually come...

 

I close on a rental property Tue. 8.1%. & I might not be done.

 

The problem is these rates are hitting after record run up in housing prices making them extremely unaffordable for the majority of Americans looking to buy a home.

 

You’ve gone and tarnished it for him.

 

Understood. Just like we saw with college tuition, the cheap borrowed money allowed prices to explode.

 

my in-laws have been trying to get me buy property next to them in Hiawasee...nice place but wouldn't want to live there

 

I’m looking at investment, vacation property. I like those mountains and rivers up there. Wineries and wildlife don’t hurt either.