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Amelia_Blake_ t1_iwvcagw wrote

I was a potential buyer, but luckily I was just trying to upgrade, so I still have a comfortable home. I’m not scared, I’m just not willing to pay 7% interest on a 30 year loan 🤷🏼‍♀️

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deathxbyxtaxes t1_iwvdwas wrote

Glad you’re comfortable, I wouldn’t expect it to go down significantly anytime soon.

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Freexscsa t1_iwve84v wrote

very likely at least the next 10-20 years before it ever goes down its sad how many people are ignorant of historic interest rates.

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deathxbyxtaxes t1_iwvepnx wrote

Seriously, these rates are great compared to the 80’s, although sale prices were an order of magnitude lower to be fair. Once people get over the shock of such a rapid rate rise I think the market will stabilize some. I wouldn’t expect to see record sale numbers, but people will still buy.

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MurlockHolmes t1_iwvt27l wrote

I would take 80s interest rates for 80s prices, as it stands we're on our way to making it so home loans are unfeasible and only the people that can buy in cash will be able to afford houses

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deathxbyxtaxes t1_iwvy9ve wrote

I find that a lot more likely than everyone cheering on a market crash.

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Celcius_87 t1_iwwnhff wrote

Some of the people wanting a market crash ARE cash buyers

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deathxbyxtaxes t1_iwxbe6y wrote

Sure, but most of them are not in my experience. Almost everyone I’ve seen cheering for a market crash is in position where they can’t afford to buy otherwise. I get it, but it ignores all the nuance of the effect of the larger economy.

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64557175 t1_iwvwskf wrote

Well luckily that means I'll have my first home right before I'm too old to be of much use in the workforce... 🥲

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Yourponydied t1_iwwxhe8 wrote

I bought my house in 2015 at 3.5% Ignorant to all of it, the bank told me is an OK rate. When I googled it, I found an article from the 08 recession "the days of 3.5 percent interest gone forever"

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Tuned_Out t1_iww6rq2 wrote

I'm in a similar position. We're very lucky we can save another year or two. The best (but hardest for most) way to combat a high interest rate is with a higher initial down payment.

General advice if anyone here is in a position to take it:

Now is not the time to be grabbing zero or low down payment loans. Be warned, the interest will enslave you and the PMI is something most first time buyers don't consider until they're deep into the process.

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proteannomore t1_iwwppal wrote

I'm willing to eat the interest rate but not without at least 20% down. Rates will fall eventually and I can refinance.

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54794592520183 t1_iwxqho9 wrote

I will be early next year. I would prefer lower, but 7% on what is the question. If the housing prices go down, I won’t mind the 7%. Logic being, good chance housing prices go back up at some point.

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