Homes dont sky rocket because of rates. They sky rocket because of demand and peoples willingness to overpay. Low rates may increase sales but not for ever. As people buy their homes they get out of the market. Inflation raises cost to build, tjat raises prices, low inventory, that raises prices. But still, people are too willing tonpay too much.
I think that if and I say a big if, they start deporting tens of millions of people out of this country not only will real estate prices start dropping I think the carbon dioxide gases will start dropping!
I know exactly what happened. While doing some work for one of the actor Jack Nicholson's
former girlfriends in North San Diego county around 2019 just after I sold a house,
we started comparing notes on conspiracy theories and I've got to hand it to her she kept up with me pretty well.
She told me about one of her neighbors around the corner and that they had been offered 1 million for their roughly $400,000 home if they were to leave within 30 days and the owners of the house looked at each other thought it over quickly and said yeah we'll take it.
So the corporation and my hunch was one of Black Rocks or Vanguards, renovated the property and then put it back on the market for $750,000
I then ask this lovely lady why would they do that? She replied I have no idea and then it dawned on me that this was a tactic they were using to spike the real estate appraisals and the interest rates at that time because of the money I just put in this bank was 001%, virtually nothing.
Multiply this tactic by hundreds if not thousands of homes in key areas across the country and it was an easy way to trigger the spike in real estate values.
I probably shot high on that number but loan rates are determined by the overall credit scores of a person.
Nevertheless my banker friend hates high rates because it makes it harder to loan money out. His first year was in 1981 when the rates were 10-20% during the Reagan presidency.
I told him if I deposit my cash at your bank only getting . 00001 % while you loan my money out how is this fair to me?
Trump::: “Housing is all about interest rates. I know more about housing than anybody in history. No president. And they can pass all the bills they want. It's about interest rates."
"You get the interest rates down. Everybody's going to be very, very happy. We're going to get it down very quickly."
Housing prices will jump, and property taxes will climb with it. It's disguised as "for the people" and always ends up with government getting more revenue
It is all about the monthly payment, which is largely impacted by interest rates. Property taxes are also a big chunk. A third of my payment.
Warsh confuses me a little. He wants to reduce the Fed’s balance sheet. That usually means a quantitative tightening and higher rates. Unless, it is the government paying off the debt that the Fed holds. And maybe, like the interest that we pay the Fed, it comes right back to the treasury. I can’t find anything that tells me what happens when the government pays off the maturing Fed debt. It was very hard to find out that interest payments come back to the treasury minus a small fee.
Like I've said before the problem is not Interest Rates,the problem is when these Dumacrat Citys which is mostly in this country Reevaluate your Property at ridiculous prices every 8 years or so to feed the Monster Downtown.
We bought our house in 87 at 10 1/2 % with $5,000 down payment ,Lawyers on each side of the table and was affordable ,we refinanced twice over the years and ended up at 6 1/2 % till it was paid off and lowered the years to 15 instead of thirty and dropped the required mortgage insurance with the first refinance which was over a hundred dollars a month and now it's crazy how much it's worth.
Wow WowWow ! Thank u for posting this article . I just read it ALL !
That was the most interesting, educating, tantalizing, knowledable pieces of unbelievable "it's a big club " bit of truth that' I've read in .. probably ever read !
This is very unfortunate because the price of homes sky rocketed when the interest rates were the lowest.
This is what the bankers want, use our money to lend out at 9% while we get zero usury back.
Homes dont sky rocket because of rates. They sky rocket because of demand and peoples willingness to overpay. Low rates may increase sales but not for ever. As people buy their homes they get out of the market. Inflation raises cost to build, tjat raises prices, low inventory, that raises prices. But still, people are too willing tonpay too much.
Deport millions of illegal and “legal” turd world parasites and demand will return to normal, as will prices.
Immigration is the root of almost every problem the White Christian Civilised World is facing.
This is true and I've been saying this for some time now.
It’s hard to understand how people just don’t get this simple fact.
I think that if and I say a big if, they start deporting tens of millions of people out of this country not only will real estate prices start dropping I think the carbon dioxide gases will start dropping!
I know exactly what happened. While doing some work for one of the actor Jack Nicholson's
former girlfriends in North San Diego county around 2019 just after I sold a house,
we started comparing notes on conspiracy theories and I've got to hand it to her she kept up with me pretty well.
She told me about one of her neighbors around the corner and that they had been offered 1 million for their roughly $400,000 home if they were to leave within 30 days and the owners of the house looked at each other thought it over quickly and said yeah we'll take it.
So the corporation and my hunch was one of Black Rocks or Vanguards, renovated the property and then put it back on the market for $750,000
I then ask this lovely lady why would they do that? She replied I have no idea and then it dawned on me that this was a tactic they were using to spike the real estate appraisals and the interest rates at that time because of the money I just put in this bank was 001%, virtually nothing.
Multiply this tactic by hundreds if not thousands of homes in key areas across the country and it was an easy way to trigger the spike in real estate values.
I'm confused by your second sentence. If interest rates are very low, they wouldn't be lending the money out at 9%, more like 3%.
I probably shot high on that number but loan rates are determined by the overall credit scores of a person.
Nevertheless my banker friend hates high rates because it makes it harder to loan money out. His first year was in 1981 when the rates were 10-20% during the Reagan presidency.
I told him if I deposit my cash at your bank only getting . 00001 % while you loan my money out how is this fair to me?
Trump::: “Housing is all about interest rates. I know more about housing than anybody in history. No president. And they can pass all the bills they want. It's about interest rates."
"You get the interest rates down. Everybody's going to be very, very happy. We're going to get it down very quickly."
It will definitely help those with high interest rates if they can refinance. This could be a short term gain for long term pain
Inflation rears its ugly head
Housing prices will jump, and property taxes will climb with it. It's disguised as "for the people" and always ends up with government getting more revenue
Donus a favor and killl the Fed. Let the treasury set rates. Then kill the IRS because we wont miss it.
I’ll believe it when I see it.
It is all about the monthly payment, which is largely impacted by interest rates. Property taxes are also a big chunk. A third of my payment.
Warsh confuses me a little. He wants to reduce the Fed’s balance sheet. That usually means a quantitative tightening and higher rates. Unless, it is the government paying off the debt that the Fed holds. And maybe, like the interest that we pay the Fed, it comes right back to the treasury. I can’t find anything that tells me what happens when the government pays off the maturing Fed debt. It was very hard to find out that interest payments come back to the treasury minus a small fee.
Like I've said before the problem is not Interest Rates,the problem is when these Dumacrat Citys which is mostly in this country Reevaluate your Property at ridiculous prices every 8 years or so to feed the Monster Downtown.
We bought our house in 87 at 10 1/2 % with $5,000 down payment ,Lawyers on each side of the table and was affordable ,we refinanced twice over the years and ended up at 6 1/2 % till it was paid off and lowered the years to 15 instead of thirty and dropped the required mortgage insurance with the first refinance which was over a hundred dollars a month and now it's crazy how much it's worth.
Bring it on, I have a free fha refi burning a hole in my pocket right now
Give it some time people, good grief. This place is becoming more and more knee-jerk reactionary.🙄
Wow WowWow ! Thank u for posting this article . I just read it ALL ! That was the most interesting, educating, tantalizing, knowledable pieces of unbelievable "it's a big club " bit of truth that' I've read in .. probably ever read !
So.... Business as usual in Washington DC. I don't think we can escape it