Mortgage rates are dumping

This is a bad sign for America’s housing market. Mortgage bro here, back to explain why and what the political implications are of this.

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Isnt a drop good for people wanting to buy??

Bear trap. Rates are running back up and inverting.

Good for blackcock

I don't understand... I thought they were raising interest rates to combat inflation? Is this saying that they were just dropped?

For people who have an existing home and want to sell it and immediately buy another or just stay in their current to wait for more equity, yes. For first time home buyers...no. Low rates means house prices will keep going up to higher levels. But with the economy the way it is, the only way to fight inflation is to increase rates to get more interest on the loans. The fed then burns this interest cash to decrease the money supply. Inflation is peaking at these levels so they are going to stabilize the interest rate to wait and see on supply line increase prices due the shit show we have been through.

This.
The average fucker's employment status and career prospects are bleak as fuck. Only one's winning in this situation are cunts like blackrock.
They'll just hoover up all the real estate and turn everyone into permenant renters, welcome to the future goy lol

Mortgage rates recorded their largest decline this year because the banks raised their bets that the economy is headed for a downturn. The average rate on a 30-year fixed-rate mortgage fell to 5.30%. That is down from 5.70% last week but far above 3.22% at the beginning of the year. This leads to a short term gain of people getting houses with slightly lower rates than a month ago, but has the long term effect of causing home prices to continue going up. That’s the bad thing. Home prices will start skyrocketing once again and regular people will not be able to afford. The ones that do will become house poor and the feds will increase taxes. I anticipated this housing crash in a post back in January, but the selloff of homes is just getting geared up. Every hedge fund with single family homes in their portfolio are ready to cash in their chips and hold cash as they watch all these fomo buyers chomping at their feet to get “lower” rates. Once these fomos are holding the bag, the fed will continue to spike rates because of this short lived dead cat bounce and the market will see defaults and foreclosures as people who got helocs and credit lines to support themselves during this inflationary period start giving up. This September or October, you will see reports of an overly saturated seller market. Prices will adjust to compete with desperate homie owners seeking to get out of their credit defaults, and that will drive down home prices.

to suck in buyers

oh no you can buy a house a 5.3% interest??!!!

Explain to me how this is a bad thing for consumers?
The bank loses out on a little profit?

Tl,dr: we’re about to see a deadcat bounce and then see the mother of all housing crashes this year.

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This. The hedge funds need bag holders.

First time home buyers are retarded if they buy now without a huge down payment. They are unironically priced out now.

Zoning restrictions and tax kikery aside, how realistic would it be to just buy a plot of land and build your own house? Surely it's cheaper than letting financial institutions ass-rape you for the next 30 years. Assuming you have SOME of the capital.

Prophetic but just remember that's also the mother of all bear traps before the fed has to print to pay towards the debt.

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I don't understand this tweet, how is this the biggest drop when a year or so ago they had it down to 3-4%?

They did raise rates. Inflation has stabilized for the time being. However, we have yet to hit a harvest season to see how produce prices go up.

Wow, it's as if moving while school isn't in session is more common, and the banks are trying to encourage it now, before rates are above 7% this fall.

Why would you buy now with a huge downpayment when rates are this low anyhow? Dumping tens of thousands of dollars in cash on a house when you could finance it and make more money in the market than 4-5%?

It has gone up so high that the dips are historically notable.

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we have bigger problems, like property taxation
solve that first

>just buy a plot of land and build your own house
Easy if you have the cash to do so. It's hard as hell to get a land loan. You can get a dev loan and buy land but most bank require you to have a professional build in order for the loan. And building your own house is easy and does save cost because most of the house price is due to labor cost. But most people don't know how to build a house these days and most states make it so fucking difficult to navigate the red tape that people don't want to try.

You would still have to build it to code, I believe. Which involves a lot of bullshit, similar to why cars get more and more expensive due to safety/emission mandates.

You can't just put together a log cabin like your great great grandpapi and expect them to allow that.

>drop to 5.3
Wtf how high did they get

Personally, im bullish on property taxes going to Mars.

It's kind of a retarded metric then. Just like saying "record job creation" after telling everyone they weren't allowed to work for a year.

Thay doesn't make sense

Exaplined it here: >> 385652276

kek just another house for me and not for theee faggots.
>bought first house during first recession
>bought second house in 2018
>buying third house next major dip
The summed cost of all my mortgages is less than the average faggot city tranny pays in rent.
SETF was always a kike psyop.
Men invest in land or industry.

is fixed mortgage better?

The huge down payment is to prevent you being upside down if the shit crashes. That's what happened to a ton of people in 2008.

>and build your own house?
Are you a master electrician and expert plumber?

Fuck yea obviously

>inflation stabilized
No it didnt

Upper 6 I think.

>The huge down payment is to prevent you being upside down if the shit crashes
As long as you dont lose your ability to pay the mortgage, that doesn't matter

Jesus. Pretty sure mine is sub 3

> not having a 2.75% fixed loan already

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Being upside down on your home typically doesn't matter in the short term. It only matters if you're trying to sell before the market goes back, or you have some kind of home equity loan you took out.

>master electrician
>expert plumber
These are meme jobs that only exist because people are fucking retarded. Hence why mexicans are taking it over. Some states allow you to do your own electric and plumbing and only require a state sign off when you are done.

There is no political solution

>master baiter

Its noteworthy because a giant changes in the rates lets financial traders know there is money to be made there. The rates have been artificially kept low, and now there is a growing incentive to drive them higher(and faster).

There's already a huge wave of layoffs happening across the country. Historically, housing crashes have coincided with layoffs.

>make more than 5% in the market
Tell that to all the people who are *down* this year.
You make it sound like getting a positive return is automatical.
>invest X amount of dollars
>LOSE 7%
People who are in cash have outperformed crypto holders and stock holders this year

>be crypto/stock investor
>lose 5-66% of your investment this year
>AND deal with inflation
Cash has unironically outperformed normal investments in 2022

>The fed then burns this interest cash to decrease the money supply.
Like actually, physically burn it? Or "burn it" into someone's pocket?

>Every hedge fund with single family homes in their portfolio are ready to cash in their chip
BUT YOU GUYS TOLD ME BLACKROCK WOULD JUST BUY THEM ALL UP AND RENT THEM NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

>In all seriousness, this move was clear as day. Fuck, my mom even said something like that.

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Some say the land of New Hampshire allows this, but they say local taxes almost make it not worth it.

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I recently bought some cheap land, 50 acres for ~$80k. A steel barn kit (2500sqft) can be had for about $30k. Add another $20k-$50k to finish out the interior and you can have a house for much less than $200k. This includes digging a well and getting electricity to the property.

I bought a new house a year ago after selling my started for 100% profit and got 2.6 fixed. My new house was inflated as fuck but the profit I made because my old house was also inflated went into my new so it washed out.

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It’s a bull trap bro

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housing crashes happen with layoffs. See: 2008

I'm currently doing this and it wasn't difficult to get a land loan. I've got an average salary and low debt. There are a lot of building codes and shit but it's fairly straightforward.

>People who are in cash have outperformed crypto holders and stock holders this year
DATS RITE
Fucking SOOO many people told me to dump cash into markets and I have refused.

>master baiter
Professional job that requires experience

Most money is digital. The delete 1 file and a billion dollars disappears

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Oh fuck a low rate just flew over my house
5.3 is still over 50% higher than the start of the year

If you build anywhere near civilization its going to cost a pretty penny. Then you have to deal with building permits. Also, the cost of materials aren't like they were pre-covid. Its gonna hurt. If you can build it yourself then fuck it none of that really matters because you'll save so much money. My ex's grandpa did that, although it took him 10 years...

>MFW all those retards claiming prices were about to plummet are now freaking out
Housing prices won't drop a cent in your lifetimes.

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money printer class wins again, goycattle continue to trade their valuable labor for worthless paper

I think right now it's going to people's pockets because shit is corrupt. But in serious times, they literally burn it. The fed has a giant furnace in the basement.

You don't have to be a master in either of those things to build a house. You just need to read the codes and not be retarded.

You only lose when you sell, you should see investment as long-term (ish). If you invested money recently and suddenly need it now, perhaps you should have kept it as a buffer instead of investing.

The only people who are fucked are those who were looking to retire this year or so and now their portfolio is down. In that case, work another year to see how it works out. If you're 65+ you can consider taking social security if you're at a good number.

Being down in a year or two should not break your strategy. It's also a reason people balance stocks and bonds because they usually move in the inverse of each other, to hedge against overall down trend.

How realistic would it be in that case to loosen zoning restrictions and building codes? I know some states are more lax than others.
This is exactly why I think house prices in US, and the West in general, are 100% artifical. God forbid some hedge fund kikes take a hit on their commericial real estate portfolio.

>getting electricity
Might as well go solar if your that far out in the sticks