Bond yield at 3.37% on the 10 year note. Fed eyeing a 75 basis points hike. Next cats and dogs will have to cohabitate because housing is so damn expensive. Mass hysteria!
https://www.cnbc.com/2022/06/13/fed-...this-week.html
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Bond yield at 3.37% on the 10 year note. Fed eyeing a 75 basis points hike. Next cats and dogs will have to cohabitate because housing is so damn expensive. Mass hysteria!
https://www.cnbc.com/2022/06/13/fed-...this-week.html
Stat came from the county in a meeting the other day. Seems far fetched to me too but chatting with some outfitters who use the Cobblestone and TVR, they’ve dropped their prices due to decreased demand.
The money is there. The pricing and the demand are not. I would rather say the entire bond market went bid-wanted today than suggest there's some mortgage-specific credit availability issue.Quote:
Originally Posted by Stu Gotz
(Sorry for the lack of multi quote here. Not trying to post pad, just didn't expect 3 things to reply to!)
https://www.cbc.ca/news/business/hom...rvey-1.6487137
one in four canadians will have to sell if rates go up any more, 18 % already can't afford their homes and the rates are expected to rise
Why?Quote:
Originally Posted by XXX-er
Do Canadians all have variable rate mortgages? I don’t get it.
Or do they just not understand the question?
In Canada, I believe, the mortgages aren’t fixed for the mortgage duration like in the US.Quote:
Originally Posted by Mustonen
In the US if you get a 30 year mortgage @ 3.5%, then that’s your rate for the next 30 year, unless you pay it off/refinance early.
In Canada, a 30 year mortgage is on that is amortized over that time period, but the mortgage only lasts for 5 years typically and then gets renewed at current rates. There’s also a prepayment penalty. So mortgages are always coming up for renewal at market rates, even if the homeowner isn’t moving/selling.
That may be because the airport is still closed. Town is quiet and I have to say I like it.Quote:
Originally Posted by snapt
My husband’s wildlife tour schedule has been more quiet vs last year, but not down 75%
20 seconds of googling confirmed that. Thanks!
Wow that's crazy. I knew there was a reason I'm glad I don't live in Canada. [emoji1]Quote:
Originally Posted by J. Barron DeJong
The US style mortgages only exist because of government policy. Fannie/Freddie, FHA, etc. we’re created to enable these loans to exist, since the banks/markets wouldn’t take on that type of long term risk. For better or for worse, it’s a subsidy for homeowners from the government.Quote:
Originally Posted by yeahman
Pages 5-6 here have a bit of a historical summary:
https://repository.upenn.edu/cgi/vie...penniur_papers
Demand in GTNP is gonna go absolutely berserk.Quote:
Originally Posted by babybear
https://www.cnn.com/travel/article/y...ing/index.html
Demand may take a hit when the Super volcano under the park explodesQuote:
Originally Posted by rideit
He seems to think that most of the damage is not in the areas most of his guests want to go- ie Old Faithful, but certainly remains to be seenQuote:
Originally Posted by rideit
But more GTNP tours is preferable to him anyhow. A nice 5-7 hour day rather than 12-14 hour Yellowstone days
I figure they'll reopen the West, South and East Entrances within the next few days. The North Entrance (and possibly the Northeast Entrance) probably won't open again this year.Quote:
Originally Posted by babybear
that doesn't make senseQuote:
Originally Posted by snapt
lucky for me breckenridge is over booked july and august can't keep the tourists away
collectively everyone is holding their breath right now waiting for the shoe to drop and the lights to turn off
kinda weird to be getting that panic fear from just about everyone in the construction trades right now
lead times from products are getting shorter every week now
TV is slammed right now and we’re attributing it to the air traffic coming in here and heading over the hill.Quote:
Originally Posted by babybear
It's kinda weird out. This place has a big seasonal influx of people usually, and none of them are here now. It's super quiet here, almost eerie.
It could even be longer than a 5 year rate but then for the longer term mortgages you pay a higher % to guarrantee you payments for longer, mostly people have been doing the variable rate cuz it is SO much lower but instead of spending less/paying the mortgage off fast people have been buying houses they won't be able to afford when the cheap rates end and la-la-la-ing becauseQuote:
Originally Posted by J. Barron DeJong
rates stay low forever and RE goes up forever eh ?
in any case i don't know the words to the la-la-la so i am considering buying more RE at the bottom
edit: but probably not
but the point of the whole post is that a lot of people are fucked
I have a GF who is a realtor in the Palo Alto, Ca area. She’s been selling a few hundred mm a yr.
She said the “credit card” buyers are gone. Crypto and tech workers who were borrowing against stock to pay 6,7,8 mil for a 2000 sq foot house. . Same with the floating rate buyers. Now up the creek without a paddle.
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Rates up big again today. Now 6.28 (plenty of 6.375-6.500 quotes out there, but lower rates available with upfront costs).
Fucking hell...hurts. We're finally closing on our HELOC today and going to get fucked by these new rates. Effectively dropped our budget by 70K in the last week alone. That's one way to crush home appreciation and sales.
so on a heloc you pay the going % rate on the new money you want to borrow or does it float? I'm pretty sure the new rates are cuz of inflation, not god punishing you
There are lots of variations on the HELOC loans. We close today with an initial disbursement at 4% (promo we got when we applied), no closing costs if we take out 5k (which we can pay back without penalty anytime). Future disbursements are fixed rate on the day we get the disbursement.Quote:
Originally Posted by XXX-er
This report is pretty crazy- https://www.blackknightinc.com/black...gage-monitor/?
As of April, the monthly principal and interest (P&I) payment on the average-priced home with 20% down is nearly $600 (+44%) more than it was at the start of the year and $865 (+79%) more than before the pandemic. The April number was based on a 5.25% APR 30Y.
At 6.28% APR 30Y with 20% down today means the average home payment has jumped a further $201 since April, $800 since the beginning of the year (a 59% increase in 5.5 months) and $1066 (a 97% increase)since before the pandemic.
Average monthly payment of homes sold in the US at beginning of pandemic was $1098
Average monthly payment of homes sold in US start of 2022 was $1364
Average monthly payment of homes sold in US in April 2022 was $1964
Average monthly payment of homes sold in the US today is $2165
Between high P+I payments, inflation, higher property taxes and higher insurance premiums something has to break, right?