• DocMcStuffin@lemmy.world
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    1 year ago

    Nearly 82% of home shoppers reported feeling “locked in” by their existing low-rate mortgage, according to Realtor.com, while around 1 in 7 homeowners without a selling plan cited their current low rate as their reason for remaining on the sidelines.

    Isn’t this one of the big problems right now? Most of the buying is coming from corporations who turn around and provide rentals at jacked up rates. Even if I wanted to sell now, I would have to settle for one of those rentals or put most of that money back into a new mortgage at an inflated cost and interest rate.

    • qisope@lemmy.world
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      1 year ago

      Absolutely, my current rate is 2.8% and there’s no way I’m moving from that to deal with either of those options. Jumping from 2.8 to 6.8 could easily add $500 or more a month in interest payments for a lot of people.

      • sadreality@kbin.social
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        1 year ago

        People who live in their houses don’t move because they chose to (save from being loaded) they moved because life events forcing their hand. Buying and selling houses is fool’s errand in raising prices/low interest. Currently it is essentially taking a big L and will get worse for people who are forced to sell/move/buy.

    • nobodyspecial@kbin.social
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      1 year ago

      Even big corps can’t make money on rentals. Not enough to bother with the risk. Higher property taxes, higher insurance, higher maintenance costs on one side, deadbeat friendly regulation and wages not keeping up with inflation resulting in not being able to pass the extra costs along to renters.

      Starwood is the first REIT looking to sell 2000 of their 3200 homes, I expect more to follow especially if Fed hikes another 50-100 basis points. Why would anyone go for a < 3% return cash on cash from operating rentals if they can make 5-6% from loaning money to the government?

      Normally you’d expect this to be good news, with falling demand making homes affordable. Not going to happen. The costs of building a home, between more expensive materials, tight labor and high cost of debt (builders take out unsecured loans to buy land/build the home) mean new homes are stupid priced, and that feeds into higher costs of older homes. Just like the insane car market post COVID shortages. Expect paralysis and continued housing shortages, not cheaper housing.

    • douglasg14b@lemmy.world
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      1 year ago

      Partially?

      I feel like existing homeowners that feel stuck by their low interest rates are is a hellova better spot than someone trying to buy a home with existing interest rates…