Housing Market Heads Toward Destruction
So much for the housing market. Rates have more than doubled in 10 months!
Mortgage broker here. These rates are insane and making a HUGE impact on people's ability to buy. Even well-qualified borrowers are getting priced out before eyes. $800/month higher than avg on 1/1 based on $450K loan amount.— Morgan Faricy (@MorganFaricy) June 14, 2022
Here’s a longer-term view. The Fed hasn’t updated their chart since May but you can see that rates last exceeded 6% just before the global financial crisis. Keep in mind that back then home prices were lower and anyone could get a liar loan, but at 6% today huge swaths of buyers are priced out.
Most likely a crash won’t happen like most think it will. Now that everyone is expecting it and preparing what may happen is that we will see a crash followed by a quick rise. As soon as there’s any type of drop every real estate minded person and America will be on the available properties.
That doesn’t mean buy a house now. If you need to than sure but just working a job and diversifying your investments until the moment is right seems like the best plan. I may be wrong and in a year it’s worse and everyone says you should’ve bought last year. I’d still wait and see how things pan out.