Submitted by cbusoh66 t3_11dgkfu in wallstreetbets
cbusoh66 OP t1_ja8g7ng wrote
Yep, those Fed hikes are really working and housing has really slowed down. /s
OneFly1035 t1_ja8i1lb wrote
Housing prices near me went from around 400k to 375k. Rent went from around 2000 to 3200 lol
Rates are currently making housing significantly more expensive
Mariom2 t1_ja8rr4k wrote
It’s unsustainable for those people that had ARMs and those who were hit with big property tax influxes. Something has to break and it’s not going to be the interest rates or renters IMO.
OneFly1035 t1_ja8s460 wrote
The ARM crisis will be in 5 years from now if rates are still high. I doubt many people had ARMs prior because rates were extremely low for a long period of times. Even those that did the ARMs now are capped at maximum rises total and per period.
rp2012-blackthisout t1_ja938nb wrote
no one is on ARMs vs '08.
throwitawayCrypto t1_ja941lp wrote
I need the next MB to come out of the woodwork and do the math on this bc I have no idea how to get that data but it’s definitely in the works
rp2012-blackthisout t1_ja9fkmz wrote
In mid-2022, adjustable-rate mortgages made up nearly 10% of all new home loan applications, according to the Mortgage Bankers Association
In 2000 it was 30%, in 2005 it was 35%.
But to help your case, in 2015 it was 5%. So yes, we're way off the highs and lows of ARMs.
lost_in_life_34 t1_ja9h5rz wrote
towards the end of the 2008 bubble no one really had ARM's cause they couldn't afford them.
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they had interest only 1 year loans that were no income of documentation verification
rp2012-blackthisout t1_ja9mojr wrote
yeah NINJA loans. Another thing not happening now...
007baldy t1_ja8yngs wrote
Plus if they do the 5/1 or 7/1 arms, rates should be dropping in those time periods and they won't even be into the rate adjustment period before they can refinance at a lower fixed rate.
lost_in_life_34 t1_ja9gvw1 wrote
northern NJ the house across the street just sold for $50,000 over asking. it's zoned for one of the best high schools in the country
Neither_Strength2583 t1_ja9aisn wrote
Builders are offering to buy points down for buyers as part of the incentives to sell.
Potato_Octopi t1_jaalzdd wrote
Mortgage rates came down over the past few months, and prices have come down a bit too.
Demand is still down quite a bit though.
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