For the first time since 2008, according to a widely watched survey, the average interest rate on a 30-year fixed home loan climbed above 6%, marking a dramatic explosion in borrowing costs.
In July, Southern California home sales fell 35% from a year earlier, according to real estate firm DQNews. The six-county region’s median price — the point at which half the homes sold for more and half for less — slipped to $740,000 in July. That’s 2.6% below the all-time peak this spring. Compared with a year earlier, an increase to 6.02% adds $1,105 to a monthly mortgage payment if you put 20% down on a $740,000 house.Many would-be buyers simply can’t afford such increases, and a growing number of economists expect Southern California home prices to fall in 2023 compared with 2022, though by less than 10%.
During this latest housing boom, lending standards were much tighter, and many homeowners choose not to sell in a soft market if they don’t have to.
Have we not learned anything from 2008? If the banks get to greedy and raise interest rates too high and too quickly, we will see more foreclosures, homelessness and another worldwide recession
Real estate investment is definitely good. Actual data proves that housing investment can definitely outperform inflation. The key question is whether your asset size can wait until that day. The house does benefit in the long run, but the beneficiary may not be you
And we are heading towards a 2008 crash once again.
Don't worry I started at 11 % to 8% to 6%.
You can thank POTUS
Is this supposed to scare buyers?