The Fed raising interest rates is destroying the housing market. - The Great Awakening

The Fed raising interest rates is destroying the housing market. 💥 BANK COLLAPSE 💥

posted 1 year ago by Retaining_H2O 1 year ago by Retaining_H2O +196 / -0

30-year mortgage rates are near 8% with excellent credit. Interest rates have climbed for the past three months straight. The Fed is considering another interest rate increase for November and December, possibly pushing rates up to 8.5% or even 9%. The reasoning is that higher interest rates will "slow down inflation".

Home sales are at a 13-year low. Factor in the higher cost of insurance and the fact that property taxes are going up to unaffordable levels and the very high cost of labor and materials for home construction... and you have a real estate market that's going to crater.

I personally know several homeowners that had their homes listed for sale, but have removed them from the market in the past 2 months. They will wait and hold on to what they have for now. One real estate agent mentioned to a couple that they should keep their house off the market until at least middle of next year and then decide based on market conditions.

I'm suggesting that the U.S. economy is a three legged stool... and one of those legs is housing and private & commercial real estate. If it fails, the economy goes into a deep recession at best.

142 comments

142 comments share save hide report block hide replies

To The Great Awakening

We are researchers who deal in open-source information, reasoned argument, and dank memes. We do battle in the sphere of ideas and ideas only. We neither need nor condone the use of force in our work here. WE ARE THE PUBLIC FACE OF Q. OUR MISSION IS TO RED-PILL NORMIES.

This is a pro-Q community. Please read and respect our rules below before contributing.

WHY Q?

"Those who cannot understand that we cannot simply start arresting w/o first: ensuring the safety & well-being of the population shifting the narrative removing those in DC through resignation to ensure success defeating ISIS/MS13 to prevent fail-safes freezing assets to remove network-to-network abilities kill off COC to prevent top-down comms/org, etc. etc. should not be participating in discussions." Q

Comments (142)

sorted by:

▲ 6 ▼

– qiscoming 6 points 1 year ago +7 / -1

Yep, that's why it's even worse. By "starter homes" I mean 50-year old homes that were originally built for 20k now selling for 300k-400k. And people wonder why America isn't moving forward. We have a generation forcing us to work for decades to pay for already paid off houses instead of building anything new. But if you try to discuss this with anyone, you just get told you don't understand business or are jealous.

permalink parent save report block reply

▲ 9 ▼

– ObviousStatementMan 9 points 1 year ago +9 / -0

I live in a home built in the 70's and it's exactly right. Probably sold for $40k - $50k back then, it's 10x now and still rising.

I could rent my house for $4,000/mo and I would have a literal line of people begging to sign a 5+ year lease w/ a $20k security deposit by EOD today.

That's fucking absurd.

The market is grossly over-inflated by at least* 30-40% on average. And even that price adjustment is overly aggressive, but has to be based on inflation and The Fed's money printing addiction.