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Old 08-14-2023, 08:27 PM   #1178 (permalink)
vtec to vvel
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https://www.cnn.com/2023/08/14/homes...ion/index.html


Home Depot’s slowing sales suggest Americans feel lousy about housing"

"Unsurprisingly, people continue to attribute the challenging housing conditions to high home prices and unfavorable mortgage rates"

Once again, media relaying bad advice. Mortgage rates are currently in the 7% to 8% range, and these rates are "unfavorable"? Remember the rates in the 70s/80s/90s, when rates were commonly in the double digits? And BTW, incomes have significantly gone up since the 70s/80s/90s. In other words, we are making more money now and with lower rates compared to previous decades, and yet, these rates are "unfavorable"?

The rate is the rate, and this can always be re-financed when rates drop. The biggest issue potential buyers should worry about is the supply, or lack thereof. Even if a lender can offer a 0% rate, if the buyer does not have a home to lock this on, the rate doesn't benefit anyone.
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