A 4% increase in mortgage rates (e.g., 3% to 7%) would require a 36-37% drop in

Sign up, and you'll be able to ignore users whose posts you don't want to see. Sign up

Report problem with this ad

Sep 28, 2022
9:16:57am

garyfan All-American

A 4% increase in mortgage rates (e.g., 3% to 7%) would require a 36-37% drop in

loan amount in order for the monthly payment on a 30-year fixed loan to yield the same monthly payment (principal and interest).

Some buyers can offset this by borrowing less (i.e., bringing more cash to the table), but obviously not everyone can do that, especially at certain price points.

The prices I’m seeing are down, but not 36%.

Report problem with this ad

garyfan

Bio page: garyfan
Joined: Sep 19, 2013
Last login: Apr 26, 2024
Total posts: 37,580 (3,850 FO)

Report problem with this ad

Messages

Author

Time

A 4% increase in mortgage rates (e.g., 3% to 7%) would require a 36-37% drop in

garyfan

9/28/22 9:16am

I'm curious when builders will start building smaller homes. It's shocking that

9/28/22 9:18am

Extremely frustrating, but I get it - why build a starter home

9/28/22 9:29am

Townhomes are the new starter home. And with association fees, some people are

fredgarvin

9/28/22 9:31am

The increase in regulation and government costs have made starter homes

compcoug

9/28/22 9:37am

Blame Regulations. When you have to spend $100k in fees before you put a shovel

Iman23

9/28/22 9:43am

Land is too much, plus permitting etc. as others said, condos/townhomes will the

BNcoug

9/28/22 9:45am

I got my home 9 months ago at 2.5 %. It would have to be 180K less for the same

cougaman

9/28/22 9:18am

I am moving for a new job. We wanted to buy a home by fall 2023. Not sure what

NumbersGuy

9/28/22 9:19am

Moving for a new job these days means it had better be for a massive raise.

9/28/22 9:21am

Unless you are making a bunch of the sale of a home, which many still are.

CrimsonCoug81

9/28/22 9:24am

Problem is you are selling a home with a much lower interest rate so the home

cougaman

9/28/22 9:29am

I will effectively quadruple my salary, so it's worth it.

NumbersGuy

9/29/22 3:07pm

Yes, it won’t equal out. Housing will simply be more expensive until rates come

BlooCoog

9/28/22 9:27am

Sure prices haven't dropped that far yet but homes are still sitting longer

rad dawg

9/28/22 9:28am

The homes in my neighborhood are not moving.

TheHop

9/28/22 9:31am

Hearing that a lot.

rad dawg

9/28/22 9:41am

Yeah, prices are definitely down and houses are definitely sitting longer.

garyfan

9/28/22 9:40am

Lots of houses in my area of CO sitting for a month or more, even after price

303coug

9/28/22 9:42am

Unless there is a huge increase in the # of homes hitting the market you will

Gente_Boa

9/28/22 10:12am

Agree for the most part. Some people will need to sell and it is a terrible tim

johnnybyu

9/28/22 10:24am

I wish I could share that optimism and yes I think its optimistic

rad dawg

9/28/22 10:49am

It’s absolutely going to be challenging. I see All nonessential assets plunging

johnnybyu

9/28/22 11:45am

Demand should stay somewhat strong since many will buy with intention to simply

bluebrotha

9/28/22 10:38am

I don't think demand will stay strong because people can't qualify. I do think

johnnybyu

9/28/22 10:46am

We can just collect aluminum cans to save money, just start there

Alpi Gusto

9/28/22 10:25am

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad