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https://www.linkedin.com/news/story/mortgage-rates-top-7-again-5562332/
Mortgage rates top 7% again
By Theunis Bates, Editor at LinkedIn News
Updated 2 hours ago


Mortgage rates ticked back above 7% on Thursday amid growing fears that still-hot inflation could force the Federal Reserve to keep interest rates higher for longer. The average rate on a 30-year fixed home loan is now 7.1%, CNBC reports; when rates last hit that number in October, it was the highest level in more than 20 years. Rates dipped close to 6% in January, leading to a flurry of home buying. But that buying spree fizzled as rates went up, with mortgage applications now at a 28-year low.

The monthly payment for a $400,000 home with 20% down on a 30-year mortgage is now $230 higher than in early February.
That monthly payment is about 50% higher than the same period last year, when mortgage rates were around 4%.

I’m locked in at 2.87%. Under 5 years on payments left and it’s mine.

5 months for me. Paid, in full.

I took a heloc out with a variable rate in 2020 to buy some rental properties.... working on paying it off with the raising mortgage rates... I keep hoping it goes down, but am trying to pay it off as quickly as possible in case they don't start leveling off soon.....

https://www.linkedin.com/news/story/interest-rates-headed-higher-powell-5575892/


Interest rates headed higher: Powell

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By Theunis Bates, Editor at LinkedIn News
Updated 1 hour ago


The Federal Reserve is prepared to speed up the pace of interest rate rises following a flurry of hot economic reports, central bank chair Jerome Powell told Congress Tuesday. The Fed hiked interest rates from near zero to above 4.5% last year in a bid to curb scorching inflation, and that strategy appeared to be working in late 2022. But recent data on hiring, spending and factory production suggests the economic cooldown has “partly reversed,” Powell said. That means “the ultimate level of interest rates is likely to be higher than previously anticipated.”

An unseasonably warm January could have interfered with data, Powell said. But the “breadth” of evidence suggests “inflationary pressures are running higher than expected.”
Investors had widely expected the Fed to raise rates by a quarter point at its next meeting on March 21-22; stocks sank following Powell’s comments.

I paid 8% on a VA mortgage loan in the 80’s and considered it a deal since many were paying 11-15% on conventional loans.

Young folks don't look at history- they think 2 or 3 percent is norm......WRONG. Republican hero- Reagan- he got elected to fix economy- his record-"Over the eight years of the Reagan Administration: 20 million new jobs were created. Inflation dropped from 13.5% in 1980 to 4.1% by 1988. Unemployment fell from 7.6% to 5.5%" and interest rates approached 20%. I remember trying to buy a car- hunting hard for personal loan under 11% in eighties.

Both sides of the political agenda have "ARTIFICALLY" keep interest rates to low and given away money for decades.

thank you for sharing that insight.

https://www.linkedin.com/news/story/households-face-record-credit-debt-5571092/

Households face record credit debt

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By Jake Perez, Editor at LinkedIn News
Updated 2 hours ago


American households have increasingly relied on credit cards as prices of basics have crept up, driving balances to a new record, according to CNBC. It cites TransUnion data indicating that American households had $930.6 billion in credit card debt at the end of 2022, an 18.5% spike compared to a year earlier — and a new all-time high. A separate WalletHub survey that also incorporated Federal Reserve and Bureau of Labor Statistics data shows Americans tacked on $85.8 billion in new credit card debt in the fourth quarter, also a record.

That is not the complete story. I bought my first house in 1988 at a rate of 9.875 percent. Tried to get under 10.

I lived in the Youngstown area in 1982-83 with unemployment at 25 percent. Which is why I left.

I was not going to be successful there.

Current credit card rates are 25-30 percent, but I did not pay a penny for credit card interest last year. No one should carry credit card debt at those rates.

Your situation is not the average American's.

Those numbers I shared are the averages.

30 Year Mortgage Rate in the United States averaged 7.75 percent from 1971 until 2023, reaching an all time high of 18.63 percent in October of 1981 and a record low of 2.65 percent in January of 2021.

Since '71 we've been in a gradual decline. We've never seen an uptick of more than 2.5%. Now we're approaching the 5% mark since 2021. We've been under 6% for about 15 years now with an average at about 4%. This, along with the growing credit card debt and inflation, is really going to sting.

I know the historical data doesn't support the agenda.

Rising interest rates, obscene credit card debt and the highest inflation rate in 40 years is an agenda??

I guess sometimes simple facts aren't relevant to the conversation.

So you try lumping everything into one package when you can't refute the historical data on one aspect of it. Got it. In that case.....

U.S. economy adds 311,000 jobs in February

https://www.axios.com/2023/03/10/us-february-jobs-report-2023

You're right Pit, I "can't refute the historical data on one aspect of it".

So you resort to trying to muddy the waters about that aspect. Typical.

How am I "muddying the waters"?

Because I'm talking about the last 15 years? I have the agenda!

You want to use historical data skewed by an outrageous spike from over 40 years ago?? Nobody on the planet has had that rate in decades. Way to keep it relevant.


Here's the dirty, muddy, agenda-driven graph... I think most 4th graders could read it and understand.

Yes, history ended 15 years ago. At least when that's the only part you wish to concentrate on. That's how people rationalize things. That's why they concentrate on a time period that accentuates the point they are trying to make by excluding everything that doesn't fall under what they wish to concentrate on. But with that said, it really doesn't change anything.

And as for the other topics you decided to try and throw in just to muddy the waters, maybe you were looking for the thread about the economy?

https://www.dawgtalkers.net/ubbthreads.php/topics/1959219/sigh-the-economy-part-3#Post1959219

Or maybe not.

Yes. I want to concentrate on relevance.

None of those people have mortgages anymore.

Like talking to a freaking wall.

"Higher mortgage rates are prompting home buyers to adjust their price points so they don’t go over budget. A year ago, a home buyer looking to spend about $1,500 on a monthly mortgage payment could afford a $380,000 home, says Lisa Sturtevant, chief economist for Bright MLS. Today, with mortgage rates more than double what they were a year ago, that budget has dropped to $250,000. “In many areas of the country, homes in this price range don’t exist,” she says. First-time home buyers may be hit particularly hard because they don’t have equity to roll into a new home purchase, Sturtevant adds."

https://www.nar.realtor/magazine/real-estate-news/economy/mortgage-rates-october-20-2022


Pit: "Yeah, but, but... their grandparents had higher rates than that!" 🤣

This housing market is unsustainable. You can't price the bottom out and leave them with only crazy rents as an option and expect it to last long. I smell a crash coming.

Thank you for using a long enough timeframe to skew the data.

The reality is

mortgage rates haven't been above 6.5% since the early 2000s... that was 20 years ago.

in the last 15 years... the mortgage rate has been below 4.5

already happening the string has been pulled.

Banks are getting hit hard and realtors are taking on 2nd jobs.

in other words a minut snapshot tells the entire story. 20 years is a snapshot in human society bro.

20 years is 2/3 of the average persons mortgage.

My 1st home mortgage interest rate was 8%
My entire life I never put anything on a credit card that I couldn't pay off completely at the end if the month.

Your situation is not the average American's.

Those numbers I shared are the averages.

I'm similar to Jester... My mortgages have typically been under 8%... though I have a HELOC right now that has ballooned up to 8%...

I went years without a credit card because I didn't want to deal with them.. just used a debit card... I finally got a credit card a few years back because I wanted to build my credit score, but try to treat it like a debit card and don't buy anything with it I can't pay off at the end of the month...

I am carrying a little debt on my credit card in my business because we had some major expenses that we weren't expecting... but March should bring enough revenue that we can pay that off in March or April...

May not be the average american experience but I posted because I wante Woofer to know his experience is not unique.

Part of the reason people have so much credit card debt is self inflicted. Yes there are some people who need to use their credit card just to get by but many people cause their own problems. Always having the newest Iphone...etc

Saw a marketwatch.com article in the section where people ask questions and someone wrote in that they were a couple wiht no children, make $400k.year as a household, and live paycheck to paycheck. They have a mortgage, and two $80k cars ...

Yes some people struggle because of their situation but many people just need to learn to live within their means

One thing to remember about this is that someone who has a mortgage already, their payment hasn't changed.

Unlike those who would like to try and divert the actual evidence, shewing the data would be using only a portion of the timeline to fit a narrative. Like FATE is attempting to do. Historical data doesn't work that way.

A lot is self inflicted... some it's just not being taught... I remember being in college and not really having a good understanding of credit cards... I signed up for an Indians card at the Jake to get a free t-shirt... later found out that card had an interest rate of like 25% or something crazy... thankfully, I realized it quickly, but I think many people get into bad situations from a lack of knowledge... and then many have no idea how to get themselves out of the situation...

Financial literacy should be taught starting at a very young age...

This.

And how to make change... goodness can we teach people how to make change?

And that's an odd thing. When I went to school we were actually taught about budgeting, what percentage of your income should be dedicated to housing, food, etc...How to keep a checking account. Things we all needed to learn and could be used in the real world. And of course at home I was taught about credit, how to use it and how to be careful with it. I'm certain people can be taught but getting them to apply what they've been taught may be something all together different.

I remember a little my senior year... but can't remember retaining it much... my dad taught me very little about finances, which is really strange because he was a VP for a company and invested frequently... but never talked to me about hardly any of it

I'm trying to do better with my kids...

Look, my situation is not unique.

I am in a position now to pay off credit card debt as it is incurred.

At one point in time, that was not the case. You do what you have to do, and live with the finance charges.

But at one time a credit card interest of 18 percent was considered high, now I see most credit cards are in the 25-30 percent range.

I suspect a lot of bad debt, but it is not logical to charge high rates, only to lose it when someone declares bankruptcy.

I know that happens, but I have never come close.

You will love how it feels to send that last payment.

Welcome to Pit's World...

HE picks the piece of data. Lays it down as the law of the land. Anyone with a different take is "skewing the data".

So... why 1971, Pit?

Is there something special about 1971 other than that is the generic answer at the top of the google page?

How 'bout 1961? Or 1951?

How is your generic google copy/paste "actual evidence"?


We've had mortgages in this country since the late 1700s. I'll take your generic evidence from 1971 and stuff it in the DT DOLT file... if there's any room left.

"Evidence" smh.