Since the Election........

[Tinhack]

After buying a small old house in Ohio, we built a new house in the country. After the small house sold, we spent the summer in a lake-front rental (Lake Erie) while the new one was being built. The going rate at that time was ~13%. We got it down to ~9% by going to a 15yr loan and were glad to have it.

 

[Rmart30]

I work at a transload facility that handles lumber. We are booming. Record numbers of product being shipped thru us.

 

[ultrarunner]

Our real estate prices are soaring higher, but there’s little to no construction. Its a lack of willingness to sell (holding onto low rate mortgages) and little desire to borrow against home for 7% HELOC to add major home improvements.

I think this is all interest rate driven. Maybe 7% mortgages seem low to the 60+ crowd, I can tell you right now the 25-50 year old crowd don’t think that’s low. They’d much rather purchase/improve homes mortgages of 5% or less and many are sitting on the fence until those rates return.

High rates worked for me…

Because the rates were high the prices were kept in check.

My first mortgage was 13.5% and the oldsters thought I was nuts but it penciled out… bought a home with a rear cottage…

Lived in the studio cottage and the rent from the home covered all expenses within 30 months.

The lender offered a no cost refi from 13.5 to 12 so as not to loose me as rates started to drop.

Later rates went to 9 and I saw real appreciation and rents increased…

 

[not2old]

When the rates were crazy in the seventies I paid 24.5% for about six months before being able to refinance an open mortgage. Several of my friends lost their houses. Most of the time that I had a mortgage, the interest rate was between 12% and 13%.

 

[jyoutz]

When the rates were crazy in the seventies I paid 24.5% for about six months before being able to refinance an open mortgage. Several of my friends lost their houses. Most of the time that I had a mortgage, the interest rate was between 12% and 13%.

Even in 1987, my first mortgage was 10%.

 

[rumwrks]

I think it's probably difficult to separate nervous stockpiling from increased optimism.

I'm probably contributing to this in my small way. I've been pre-buying a lot of the construction material I think I'll need in the next year or two. I know a bunch of people doing the same.

 

[jyoutz]

I think it's probably difficult to separate nervous stockpiling from increased optimism.

I'm probably contributing to this in my small way. I've been pre-buying a lot of the construction material I think I'll need in the next year or two. I know a bunch of people doing the same.

Lots of people are buying things in bulk that could be affected by tariffs. I hear people talking about this. I don’t need anymore junk to store, so I’m not going to do this.

 

[ultrarunner]

Unless your income takes a hit having an existing fixed mortgage at a high interest rate shouldn't matter because you had to qualify to get it.

When every block had foreclosures here back in 2009-2012 it was because borrowers mostly willingly stopped paying because values plummeted and/or they were stuck with a loan unable to refi at a better rate because equity evaporated.

Some well to do bought better for lower price/rate and then walked away from the no equity high interest property... I know lawyers and other professionals that did this.

 

[Alan46]

You took the words right out of my mouth. The economy is booming around here. More and more houses going up. And they aren't in the low-end market. Businesses that closed up during the pandemic are reopening now. You can see it in people's faces when traversing the isles in stores. Better times are ahead.

I hope you’re right! We were under the impression that groceries, fuel and a host of other things were going to be be cut in half, now we hear that statement is being walked back!

 

[ultrarunner]

I hope you’re right! We were under the impression that groceries, fuel and a host of other things were going to be be cut in half, now we hear that statement is being walked back!

Haven't heard that in California and even the State agencies have said expect higher prices as the new formula for California gasoline will add 50 cents a gallon plus wage laws like $20 minimum for fast food chains and $30 for hotel workers phases in and this isn't counting new tax and fee schedules plus gas and electric approved rate hikes and 20 to 40% hike in insurance premiums...

I'd call it a win if today's prices held...

Just look at the price increases for Estacada Oregon Christmas Trees.