Related Posts
Hi folks, how is thoughtworks as an organisation?
Asking because I don't know much about it and have received recruiter's call today. Currently I am working in Deloitte. How is thoughtworks hikes, wlb, does it provide any benefits apart from fixed pay? My research gives me a mixed review: some say it's good, some say that thoughtworks is not stable enough like big 4 or other organisations. Pls help Thoughtworks Deloitte
How’s litecoin doing? Thinking to invest in it.
Coach
More Posts
Pro
Additional Posts in The Real Estate Bowl
Mentor
Coach
Mentor
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Subject Expert
As long as the job market remains strong I don’t see that happening. There are layoffs in different sectors but unemployment remains at record lows and most people could probably service their mortgages despite buying at market highs.
Even ARMs I don’t think have rate adjustments this fast. It’s usually like lock for 10 years and then change
Foreclosure rates are rising slightly, but they are still FAR lower than 2019. The foreclosure rate is just so low right now
Because unemployment is still low. Just wait for the Fed to break the economy to bring inflation down.
I think you’re correlating different issues. Home values will rise with inflation
If a house costs $100k, and inflation is 7%, then the value of the dollar has dropped and it will cost $107k to purchase the same house. That’s how inflation works
Mentor
It’s kinda the exact opposite. Stuff that used to cost $100k now costs 107k. Therefore inflation was 7%. But the rate of inflation can be uneven across different products, energy, food, housing, durable goods, etc. so a 7% inflation rate could be 12% on food, 15% on energy and 0% on durable goods and housing.
Subject Expert
Are foreclosure rates even statistically higher?
Subject Expert
That was what I saw as well, just wanted to make sure I wasn’t missing a micro trend somewhere
While I can’t see the future, I would suggest that this will be the lowest that home values will ever be, and if today is day 0 on a thirty year chart, today will be the lowest point in that graph
I disagree. House prices are trending down pretty steadily.
Subject Expert
What do you mean “another”? Foreclosure rates are not high and people who bought at peak prices have 2.5% loans.
Mentor
As inflation increases monthly payments get relatively cheaper
Todays homeowners are also way stronger from a credit/income perspective compared to those that foreclosed during the GFC.
One fact that no one has mentioned is there was a National foreclosure moratorium in 2020 and 2021 and early 2022. That moratorium was lifted in 2022. Thousands of home owners didn’t pay their mortgages for many months. Those mortgages are know working their way through the foreclosure process and will start hitting the market in Q3 of 2023.
Umm the market went up like crazy since two years ago. It was like early 2022 when the price of homes were crazy inflated. I see a wave of short sales from that time period
What high foreclosure rates? Lol
No. Most people purchased sub 4% interest if they bought in the last 3 years. A lot of houses sold in 2020 and 2021.
So no, I don’t anticipate meaningful foreclosures.
Additionally, you asking this question means you are basing your economic expectations based on only what you’ve seen happen (we all do this subconsciously) but the reality is that because subprime crash happened once in the last 100 years doesn’t mean it’s a cyclical event.
Subject Expert
Anybody who bought before fall 2021 likely still has equity in their house and can probably sell for close to break even (not including fees). If they bought before the pandemic, they probably have a ton of equity, and if they were smart, also refinanced to a much lower rate during the pandemic.
Then again, people who are foreclosing probably aren’t smart and may have had 5 or 7 year ARM’s or interest only loans from 2018 and never refi’d.
I don’t think so, since America has fixed rates. Any one who locked in sub 4% is fine.
If they don’t get laid off during the recession