I seem to recall that the housing bust of 2008 lasted a lot longer than a couple of months. The company I used to work for once offered farm machinery financing at 3 to 4 percent interest. Now it’s over 7 percent. That’s got to be causing someone to say “I’ll wait”.
“The housing market was not in a robust place to start off with. And then with mortgage rates moving up the way they have, I think we’re going to see a challenging couple months ahead,” Hale told Yahoo Finance.
Mortgage rates rose sharply in September, starting the month well below 7% and ending around 7.5%.
Housing prices here in New Jersey have really tanked the last three months. Zillow’s estimate for my house went from a peak of 909k in July to 844k. These mortgage rates will only send the value further south. I’m stuck in this God-forsaken, crappy state for now due to family obligations, but that value better friggin recover when I’m ready to evacuate this liberal hellhole for the Free State of Florida.
And those renewing their cheap mortgages are going to be in for a major shock! Perhaps negative equity and unaffordable payments.
And if lending institutions collapse, the tax payer will bail them out (including lots of executive bonuses).
pfffft.
’tis traditional. ask oBOMBa’s banker buddies.
he *guaranteed* the bailouts.
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008