I don’t see why it would go much lower without the fed cutting rates. The 10yr is still historically very low
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I’m sure this will have absolutely no effect on property values around Chicago…
Look at the short term. Trend is your friend.
Each peak is lower than the last peak. Classic downward trend. Plus TBTB are doing everything they can to keep Biden in office.
Not going to be political but that’s 100% not true. I wouldn’t be suprised if he stepped down and blamed it on an illness in the next couple weeks. They would love to replace Biden but they have no one else that can beat trump
I’m more worried that trump will get in and have them cut rates. That will lead to more inflation we actually need higher rates or they need to stay level for awhile.
Cutting rates right now is a bad move
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Everything is political. Nothing the fed does is apolitical. They’re “independent” (wink wink) but they’re not.
The fed like all government listens to money people. Money people want low rates. Therefore low rates will happen.
And it’s not so much about Biden winning. He’s a senile old man, a puppet. H whether it’s him or Newsom or Michelle Obama, it’s about making Trump lose. And a low rates helps to do that.
Are you aware of who owns and runs the Federal Reserve?
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Of course it matters. If you’re underwater you’re more likely to walk away. With 20% down, you’re much less likely to be underwater than 3%.
I’m afraid of this also because Trump knowledge of repercussions or anything (other than maybe BK’s, lol!) is a millimeter deep!!!
It’s more like the “elite”, left and right, don’t understand how bad inflation is for the lower and middle class, as it doesn’t affect them nearly as much. They love low rates so they can own more of the country than they already do.
Doesn’t really matter at this point the fed is chasing inflation not setting prudent policy like they were supposed to in the first place. Theres really no solution, it’s irreparable from any scenario I can think of unless we somehow discover something revolutionary like free energy or a good portion of the population perishes (dreary but true).
The down payment amount doesn’t impact whether real estate is a good investment. I stand by this statement.
Walking away might be a wise financial choice but that doesn’t improve the return of the real estate investment.
If not nukes ASI is going to essentially end the world we know within 10 years.
I understand how destructive inflation is in a macro sense.on a personal level I kinda like it. My assets have increased in value far more than the extra money I’ve had to spend on daily living expenses. And the rents so charge have increased as well. Net gain for me by far.
I’d be a happy camper with a return to zirp or somewhere near.
As far as the lower classes go? They’ve actually done OK. Income for the lowest income has exploded in the past few years, well above inflation. So the well to do benefited, the low end benefited. And as usual the people in the middle got fooked.
Inflation greatly benefits those with a lot of assets – I’m in that boat too
They probably fared better than middle class/upper middle class (particularly those who does not own their own home), but their costs have also gone up well above inflations too, I’d argue they’re generally worse off.
For example, a rental I used to own in Richmond, VA had market rent of $650-$700/mo in 2018, now it is $1300. Affordable used car prices doubled (~$5k to now closer to $10k). Lot of food staples (eggs, butter, milk, cereal, etc) doubled/tripled. Energy prices (oil, natural gas, gasoline, etc) are way up, as well as insurance costs. People living in a food desert are probably also getting hit hard because of fast food prices skyrocketing… Also if they start making more, they can lose a lot of government assistance that they used to also get at lower income levels.
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Lower classes not on govt assistance are not doing well. National Credit card balances show that. The amount of people with no savings or retirement accounts also.
Of course they’re not financially educated and partly are to blame as well. Just bc minimum wage jobs are now paying double what they used to doesn’t mean other minimal skill jobs that paid 15-20/hr now pay double. And inflation over the last 4 years has come close to doubling prices regardless what .gov says
The elderly on fixed incomes are particularly hurting as well in these times. Many didn’t invest in the stock market and were savers as that’s what people used to do.
You got lucky with housing doubling. It could have went the other way after the pandemic, so you should have some sympathy for those not as fortunate.
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I do.
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Wicked burn bro.
Inventory keeps climbing. Jay may have finally brought this economy to a halt.
What’s changing for real estate agents/commissions in Florida?