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| Economy |
| US mortgage rates climb steeply, slowing housing boom |
| 2022-04-01 |
| [Bloomberg via Aljazeera] Demand for second homes in the U.S. is plummeting as mortgage rates climb steeply. After a pandemic buying frenzy, mortgage-rate locks to buy second homes dropped last month to the lowest level since May 2020, according to a report by Redfin Corp. While demand was still up 35% from February 2020, before Covid-19 hit the U.S., it was significantly lower than the previous month’s 87% jump, the brokerage said. |
| Posted by:Besoeker |
| #3 Only this time Blackrock and others are buying the houses out of repo or from distressed sellers. Buffett too, and lots of other hedge funds have joined the party. It's a big reason supply is so limited and prices are so high. Big investors can borrow cheap, collect rents, and watch the book value climb. When the market starts tanking they'll buy more houses and keep on collecting rents. |
| Posted by: Whath Untervehr7663 2022-04-01 10:37 |
| #2 Only this time Blackrock and others are buying the houses out of repo or from distressed sellers. And they do not intend to resell them. "By 2030 you'll own nothing ....." |
| Posted by: Alistaire Clunk8424 2022-04-01 09:20 |
| #1 Reminiscent of the initial steps in the Obama Housing market crash. Step 1 Low Interest rates to boost the economy. Step 2 A Hot housing market leads to inflated prices. Step 3 Economy Inflation and the interest rates are steeply increased. Unemployment increases. Step 4 Sharp quick decline in housing sales sold at the inflated asking prices. Step 5 Housing glut drives prices down. Leaving many new homeowners stuck with houses purchased at 25% to 30+ % over actual market value. Step 6 Bankruptcies increase. A flood of vacant repo houses hit the market well below cost as the banks attempt to recover some $$$$$ Step 7 Taxpayers bailout the Banks again. etc.... |
| Posted by: NN2N1 2022-04-01 07:48 |