Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
BitcoinBunny
on 07/07/2023, 23:21:32 UTC
Today: 30 year mortgage 7.7%, refinance 8.08%
Who's able to buy apart from cash buyers?

Still, prices do not show much of a decline (yet).
https://www.investopedia.com/mortgage-rates-jump-to-20-year-high-7557902

It still baffles me that people can afford to keep their houses with everything that's going on.. Either prices have to decline or things will go belly up very soon.

In the UK these long term deals never existed. Most people with mortgages are on 2 year deals, some 5 years, and others on 10 years tops.
After that (if you don't or can't renew for another deal) your mortgage rate defaults to an extremely shitty around 3% on top of the Bank of England base rate, which is now 5% so in effect you could possibly pay 8% or higher.

So house prices will have to plummet pretty badly here most likely by the time all these people are on 5-6% (or worse) deals. But this plummet is usually very gradually and doesn't happen quickly. I've seen most people selling trying to hold firm but it just means the properties don't sell at all.

What is baffling here is that most bought homes are actually owned outright.

But that doesn't help countless struggling mortgage payers or renters who are royally screwed over after the terrible financial decisions over the last several years: endless money printing & 2% inflation target to pretend economy is doing better than it is / reaction to Covid / net zero energy bollocks / proxy war in Ukraine / people trafficking

Maybe highlighted simply means that, at least in London, many houses are being bought essentially by the rest of the world (Middle east oil money, Wall Street financiers getting something close to the City, etc, etc).

Well, indeed you can guarantee with the future the UK is facing more and more people will have to rent / house share. I'd guess we've long seen the top percentage of home ownership (around 70% in 2000) and are witnessing further declines, back to how things were in the first half of the 20th century.
Banking so much on making houses look like assets instead of just a home you live in was pretty stupid.

The only saving grace (not really a good one) is massive demography changes ahead with people reproducing much less now.