Mortgage Rates SURGE. Americans Can't Afford It.
ฝัง
- เผยแพร่เมื่อ 9 มี.ค. 2023
- The mortgage rates in America are surging at an alarming rate.
The average 30-year fixed mortgage rate has skyrocketed from 6% to over 7% in just 1 month.
Plus, home prices are at an all-time high in the US.
That means the average American household would need to spend $30,000 a year on their mortgage + taxes + insurance to afford a home...
That’s a staggering 40% of the typical American household’s income.
What do you think - is it still possible for the average family to afford a home?
---
JOIN as a Reventure CHANNEL MEMBER:
/ @reventureconsulting
#HousingCrash #realestateinvesting #realestateinvestor #reventureconsulting #homebuyer #realestategoals #housingmarket #housingcrash #housingbubble
![บุกร้านไอศกรีม VJ วุ้นเส้น !!!! [ดูคลิปเต็มหน้าช่อง] #Short | PANG ORNHIRA](http://i.ytimg.com/vi/g549nEhKZdc/mqdefault.jpg)
Let’s not forget that 30K is net income after taxes and also property taxes, heating, water, insurance and the list goes on. The cost of living has gone way up and incomes have not.
$75k is roughly $52.5k after taxes (I know it depends on state). Now take off 401(k) and medical, and you get $45k (if lucky). After the mortgage, you have $15k a year to pay for food, gas, clothes, car insurance, etc.
Income can only go up if production goes up
Production has been up. Wages have been stagnant for a while!
Hard pill to swallow : you are not supposed to live in a house alone.
@@garytech Another hard pill to swallow - thanks to feminism a lot of people are living alone.
If you're single forget about it.
Yeah, even if you make over $75K there are plenty of markets where you'd struggle to afford a small home. Maybe it'd work if you find a duplex/triplex so rental units cover some costs.
I barely got in a home last year as a single man. Barely.
Exactly my issue…I make decent money but it’s just me.
Renting is more expensive
@@fdm2155 psh tell me about it 23 just got a great job hahaha ha sike🤣can't afford a house and refuse to be house broke.
To many people are buying houses just to sell or rent them. I'm sure half the time people are only buying houses to flip them to flippers
Something's gotta give. IF both rate and prices are high. Demand will drop. Someone's gonna be left holding the bag of dung.
Just a matter of time for this to play out
Housing prices are already giving and coming down. The rates set the market.
@@danielstarr8957 yes true, but prices still have more downside until it becomes affordable for most people. Prices where I’m from (Chicago) haven’t come down that much from the pandemic, meanwhile rates have doubled.
@@jonbohn4655 agreed, most houses here in Dallas have only dropped around $30k and are dropping more and more every month.
Wall street investors, Air B n' B'rs, Zillow.
We paid 13.5% in 1982 in San Diego, California
I gave up trying to buy when it was 17.5% in 1981.
The average mortgage rate since the 1970's has been 6.9%, give or take. Problem is inflated home prices. Since 2020, they've increased by double digits.
2500 a month isn’t bad….
Try almost 5k in Southern California for starter home. And there is no relief in sight as buyers keep marching in
Mortgages have been higher in the past. Buy if you can afford, save and invest if you cannot. If you buy, know you will likely refi several times as rates drop in the future and they will. Remember, equity is so much more valuable than rent, control your monthly housing cost and biuld equity is best if you can, if you must wait, you must.
Yes. And as rates drop home prices will rise, canceling any advantage to waiting on rates to fall.
Only you youngins think that a 7% 30 year fixed rate is high.
Heck, that's a historical average-ish rate.
Only boomers can say that with a smirk knowing the houses they bought when rates were 10-14% were at 70-100K. These homes are over 1 mil on average now.
That is cold comfort when the median house costs nearly 10x the median income.
Silly children.
I am old enough to remember 20% mortgages and 15% CD's. I have watched multiple collapses that followed what was forecasted to be unending price appreciation.
Heck I was a mortgage lender back in the 90's when the 30 year fixed came DOWN to 9.875 at a point.
One yugely factor that everyone seems to ignore, or are too ignorant to comprehend, is that the "average" home size has DOUBLED over the last 40 years.
Twice the house = twice the money.
But you're going to whine about 7% mo money, what are you going to do when it treks north of 10%?
@@MasterHomeowner Then you're old enough to know that a 40% run up in values in 2 years is a massive bubble and the correction is inevitable.
@@dsj9831 Generally speaking, the crazier the run up in values, the more catastrophic the collapse is on the back side.
The last several crazy run ups I've worked through (late 80's, late 90's, mid 2000's, etc., Iowa has for the most part been a very stated mellow run up followed by a next to nothing run down.
Oh boy, but this time the FOMO fever hit here as well. The run down has been interesting so far. I've having difficulty predicting where individual properties will actually sell at.
The first of the year through early May is generally our "hot market." But the listing prices and actual closing prices just seem to be all over the map with little rhyme or reason.
Our government- “It’s ok, it’s their fault they go to work and still can’t afford housing. Why aren’t you rich like us? “
because we cant print up our own money out of thin air like gov does, lol
I'm saving for my first house. I want them interest rates high. When interest rates go up, housing prices go down because people only have x amount of money to spend each month. Demand drops like a rock and it becomes a buyer's market.
I'm fine living with my parents, increase the rates to 40% for all I care, stop house loans altogether. I'll wait until I have enough money.
Also let's not forget if you buy one of these mini mansions , you guys know the ones with the soaring ceilings, game room, keeping room, and media room, formal dining room and small bedrooms 😅😅. It's going to take a fortune to heat/cool that place.
lmaooooooooooooooooooooooooo
Pretty sure 50% of america makes maybe 45k or less soo we're fucked
Damn. And back in 2018 I thought my 4.35% was high....😮
Something is going to break sooner rather than later. Vehicle manufacturers may regret their decision to artificially limit production to artificially inflate new & used vehicles prices. This will definitely be biting soon with a double whammy of car debt & mortgage defaults coupled with a massive decline in home & new vehicle sales. The reason why the bottom end of the vehicle market is seeing an increase in prices is because people are deciding to steer clear of high interest rate loans.
Car manufacturers already have plans for a 2030 BMW, if they gave us all 100% there’s no room for “improvement” so they only give us 60% and charge us 100%
About time it should be 10% to 18% .
Average income is 75k? Yikes I'm half that yet
Honestly, We bought our first house in 1978. It was $65k, we had to put down 20% to cover deposit, closing, etc. We got a 12.75% negative amortization interest rate. Our payments were about $20k annually. My wife and my salaries barely covered the mortgage. Additionally my generation were subjected to the draft, we had no computers and the value of a dollar was not much. We were happy with what we had…and by the way if you had a new car you must have come from a wealthy family. So…if you want something in life go get it…eventually the situation may work in your favor.
I love it! Now that is some truth these people have to hear! Work hard, buy a home at a fair price and build wealth ! You will be fine long term! Instead, this fn guy promises40% reduction in prices without considering lack of inventory. People are using that as 10 commandments are going to miss out on raising a family in a home they can’t afford! 40% reduction is a fantasy that is not going to happen! Kids are growing up daily and time is the most precious asset we got; interest nor price are coming down any time soon. You should have bought in 2020.l instead of listening to this assclown. You would have been couple hundred k richer. Live and learn fools!
Btw, I bought Jan at 5.625! Paid fair price! Living and enjoying time w my family every day.
Very soon though, my rent might be $2000, and I am not too far from that #
Don't forget your debt to income ratio needs to be under 43% for mortgage.... clown world
Maybe if the government stopped printing money the fed (also the government) would not raise interest rates.
loving it. HOnestly its the best. NOw im just waiting for houses to come back down in price. still staying the same here in northern ky. Get you a nice house when the prices drop. then when rates drop you refinance and you got a huge house for way less money. Then when the prices raise again you get way more money if you sell.
Rates will go to the moon just like in the 80's.
If you think that is high look back at the rates in the early 80's. The economy went to crap in the late 70's and what we are going through now is probably worse so I would expect rates to hit double digits before it is over.
150k in canada, wont get you the front lawn. Geuss ill keep sleeping in my car.
In the 1980's we had 18% mortgages!
That was like putting your mortgage on VISA.
Good, don't buy and all the real estate agents are going to suffer and have to find out something else to do...
It's not just rates. Taxes and insurance are skyrocketing even more, especially in "storm states"
Answer to problem: decrease the PRICE
I agree it’s the only answer that’s exactly why interest rates are being increased. Without vehicle manufacturers & those selling property lower their expectations on price we will continue to see interest rates increase to much higher levels. Vehicle manufacturers are still hiding behind the chip shortage excuse. Funny how no other industry is still bleating about it most likely because the chip shortages are almost over.
@TommyGoGetter That’s good mortgages usually beat rentals & it’s definitely better than paying someone else’s mortgage for them.
No really... the problem is bigger than that. The government needs to stop spending money.
@@MrDmessa81 Spending money on what? 23.4 billion is spent on rent subsidies much going to landlords from housing low income families. If housing prices & rents fall hopefully that will save us billions in rent subsidies.
That's not gonna happen automagically, try increase non primary residency taxes and temporary rental income tax!
What’s even more messed up is that the 70k is gross, not the take home after taxes.
That's all?? 😂 in Canada it costs more than that just to rent an apartment lol 🤣😭🤦♀️ 2 years ago I was paying $20k a year to rent a 3bd townhouse and now I can't find a 1bd apartment for less than that... won't even get into the stupid Canadian housing market 😩 American houses are still more affordable... that's pretty bad
The average mortgage rate in the late 70's and early 80's was 12%. My first mortgage was 7.5%. The problem is not the mortgage rates. The problem is the initial cost of the houses. That is what is insane.
This is very informative! Rates really are something
Buy land and get out. Time to run, not walk away from this nightmare runaway criminal corporatism!
Have you seen the price of land?
@@adamking6005 owner financed is the best bet in a faux economy.
That rate is not high. What’s high are the home prices. Low rates are the main reason home prices are so out of control.
I really appreciate you work. You said apartments would start to go down. Im finally seeing it in Dallas.
It's over 9000!
Rates aren't the problem. It's the price of the home. Next, property taxes and insurance are pegged to the price - huge increases across the board. Historically, 5% to 8% isn't a terrible rate to borrow money. The problem is the cost of the home relative to incomes.
You forget that in 80s we had interest rates as high as 18%. It's all relative
for a long time interest rate in the 7% range was pretty much standard. These 2 or 3% rates are very much the exception
And now they are going to do 40yr mortgage, wow. If u buy a house at 30 you will be 70 at payoff
40% before tax 😱
Landlord life is tougher than you think. Glad I bought my rentals with cold cash. My dad took out a mortgage in 1983 @ 15% when the average home was under $100K!
The solution to this problem is the correct application of tax sales when they come available in the near future. Government liens are higher than mortgage liens on properties.
My first mortgage in 2001 was higher than today and I had over 800 credit score. Historically our rates right now are not high they are just higher than what we've gotten accustomed to since 2003
Watching People Sign Up For 6% Or 7% Rates Today, Is Just Blowing My Mind! Even If You're Builder Buys Down That Rate/ARM, It'll Still Average 5.50% To 6.35%, Which Is Crazy, My Lock Is 3.5%.
Still less than rent on a 1 bdrm in Cali.
It was 13% in the 80s
It's gotta crash please fed raise rates and crash it all
Going to 8.5...FED IS GOINGVTO CRUSH PRICES 18 TO 24 MONTHS
If that rate sounds high to you, you don't remember the 1980s.
Prices have to come down.
If interest keep going up then rent...to the moon
This is very difficult time with these high inflation but it's the only way we're gonna bring the cost of buying a home down. People will. Stop buyand that will create the decrease we have to Live very simply right now in order to enable the middle class to buy a home. I know it's hard but it has to happen. I'm pulling for the middle class and I completely have a home. That's paid for I just hope every american can live that Dream. We're only the richest country in the should be doable for us.
Over the years more and more tax breaks were enacted for investors buying housing. Keep the tax breaks for primary residences but cut them for investors. Homeowners shouldn’t have to compete against private equity for a place to live.
you could just downsize your expectations, look for older houses that might need some work get a lower mortgage pay it off quicker and use money you save to up grade the house gradually, the stuff they are building around me is ridiculous, why not lower the minimum squarefootage, the prices of these new homes including the gov subsidized housing for lower income, has driven our property taxes double and then they want to raise it another 35 percent.
Dont get me wrong but there are still people out there with tons of cash. So much so that it's like 1.5 million $ in cash.
Unbelievable....
The point under this circumstances it's really hard to believe that home prices will likely to come down.
I am from Socal 😔
People with cash going to buy bunch of them. Rich will get richer.
Not high. 16 percent is high. 1980's
Time to go back
when a nice house was under 100k
Same price today as was then. Do the math.
1000 dollars in 1978 is equal it 4588 today
So a 100k house then is 458800 today.
I bought my first house in 1978
28230.42 interest was 16.2%
I paid it off in 4 years.
Sold it last month for 890k.
@@davemiller1593 100k in 78 bought you way more house than 460k will get you today, you must have got a pretty nice place for that kind of money in 78
Keep acquiring assets. Rent is high. It will cover the nut. An investment property can go DOWN 40% over 15 yr period and you can still make quite a profit if you have a renter. What other asset class gives you that. You want to be in stocks today? How about alt coins? How about cash? No thanks. American real estate is the best thing going.
Who the hell is going to lend you money to acquire? You tell me
Retail investors are having a very hard time renting out their properties right now and are beginning to sell at a loss. Cash flow only works if you have a renter.
@@DiegoTorresASERE from a bank.
@@dsj9831 Rent is sky high. And the national vacancy rate is 6%. That means you have a 94% chance of renting your investment property.
@@75andbreezy89 at what variable rate? what price you have to set the rental to make positive cash flow after those mammoth costs. in my opinion you better park your money in a CD at 4-5% guaranteed. Banks are not giving away money any more
Look at the history
Rates were so low for so long cuz of wall st credit default swaps 2007/08
Historically they’re not too bad but still all interest sux
We really need to increase non primary residency taxes and temporary rental income tax!
thank God for the subtitles..... jeezus dude.
You can buy a nice mobile home 3 or 4 bedroom with sun room/porch garage port all kinds of stuff for 30k. Plop it somewhere. Live in it till the market goes down, buy the house of your choosing buy either selling that mobile home or renting it out. Easy peasy.
"Best Economy Ever" Bribem.
7% is high when compared to rates within past two years. Five years ago this would have been standard for most folks, so interest not the main issue. It’s the actual prices of the home that have “sky rocketed” making the monthly payments too high for most. I dislike when these “content creators” only do half truths…or maybe they really don’t understand themselves.
I would feel lucky if I only had to spend 30k/yr or $2,500/mo in mortgage, taxes, and insurance combined in Dallas. Where are people finding these cheap homes?
That's what I was thinking. I have paid more than that renting an apartment, lol.
If the median house is $2,500/month, that isn't too bad. Remember, not everyone owns a home, so the median income is not meant to purchase a median priced home. Only about 2/3 of families own, the rest rent.
Detroit
I bought a house in McKinney in 2020, (2000 sqft, 4br/2ba) for $255K and the mortgage is $800, while the combined payment is $1500, I got a 2.625% as interest rate.
If I would like to buy the same house TODAY, with the current prices and interest rate, my combined payment would be almost $3700 per month.
It’s crazy!!
@@elingedgar congrats. Was that your first house?
75,000 per person or for the couple? Seems very low
I can afford it. They just wont give me one
I’m sorry that they’re freezing you out of getting a home. I hope something you desire comes your way.
We are at 20k interest a year
75k per annum? Where?
Idk where financial gurus on your tube keep getting this 75k number as the average household income but you’re wrong. Nationally it’s in the 50s. Like 53k or something. Which makes the stat at the end way worse
I don't live in a mansion but am sure glad I sacrificed to pay it off yrs ago. Of course the government can still steal it if I don't pay my constantly rising property taxes. Under the current situation, the home is never really yours regardless of your age and income.
Taxes?!?!!?!!
I hope they go up to 10% 🙏🏼
Same ill crush it
Rates used to be 12 back in the day
The price of real estate is going to go up along with interest rate. Good Old Boys are going to take over.
There is the ability to take advantage of assumable loans, but the buyer will need a down.
Just imagine how we feel about buying a house in Toronto! It's impossible
It kind of blows my mind how a population can advance in technology, knowledge and skill so dramatically, and yet be way worse off overall. Where is all the extra money flowing too? Does operating a modern society actually cost more than a more primitive one, even with advanced technology? Does advanced technology offer us surety of health and resources at the cost of our money? If you get really sick in the 50’s, the hospitals probably couldn’t help you. But they also didn’t have to pay for MRI’s, CT scanners, ECMO machines etc.
I only make about 30 a year
So are we going back to 1980 rates of 20% for a financial reset or what? Will be great for new homebuyers but existing will get screwed.
Yet my savings account is still less that 1%
They aren't building houses anymore...just chitty multi story condos with a Panera on the bottom floor
$75,000 a year is not a typical income. Income has reduced down
happy me. mine rate is 3.8 fixed for 30. payments are under $1200 a month. taxes, insurance everything.
let the bubble burst. i am set till i die (age 62).
3months latter market is still strong
And that's just the median income. We also need to remember that half of Americans make 30k or less. Which basically makes home ownership off the table for half of americans.
We're half way there. Wait till they are at 15%. You think you're excited now?
My wife and I make less than $75k a year combined. We dream of owning a home! But we imagine that we will be lucky to get our children to adulthood and retire into homelessness...
Then add in.taxes to the IRS = no money
My rent is 50% of my check
No thank you, I’ll just wait until the rates lower.
In 2001 I bought my house at 7%. Waited and refinance at 3.75%
Just bought my at 6.5 and hoping to do the same, equity needs to increase though
@vchavez75 what year did you refi?
@@darknessahhhthe difference is you paid 4x as much. Derp
@@MrClownWorld only kids use the term derp but I’ll entertain you for a sec, do you know the area/state I bought in? My guess is NO. Do you know of any new developments one mile for me? I’m guessing not. Not every location will go thru this “crash” that you all are expecting, that will never happen. Do you think the homes around Disneyland decreased in value when it opened? Again the answer is no. Just say your poor it’s ok.
Ya but in 2001 the prices werent as high. In relative terms
No the answer is to pressure businesses to pay you more money which of course would cause inflation to get worse The real issue is the stability of the American dollar. Your mortgage rate versus the inflation rate factor. If you can get ahead of it you're lucky. Otherwise we're all going to become renters and to whom that is the question blackrock or the government or is blackrock the government
I bought my first house in 1986. My mortgage rate was 9:75 percent. Cry me a river.
Well.. put more down on a house then. Start saving.
7% brutal its what I payed on my accord in 2001 lol insane..no one's doing that it's to much. Trying to draw blood from a stone
Rates are over 8 percent now this must be an old video
We could sell our house, if what you're saying is true bc idk, for almost 3-4 times what we bought it for 🙄 I had no idea 🤣 we have a very low rate that's transferable to new owners 🙄 our house is more for sale 🤣🤣
Bruh.. 8%.. still home prices are increasing ! Crash is not happening.
Rates dropped 25 basis points today.
Aged like milk
Rates are definitely trending up
SVB AND NEW YORK bank collapsed the following day! Rates bout to sky rocket 🚀
@@setiset516 just the opposite will happen.
WEAK. Lets go to 10%