#increased mortgage payments

[mfi-miami]

Mortgage Payments Increased 17% Annually In July

The Mortgage Bankers Association Says Mortgage Payments Increased 17% Annually As Homebuyer Affordability Becomes More Challenging The Mortgage Bankers Association says homebuyer affordability remained unchanged in July from June. However, mortgage payments increased 17% from last year. The MBA’s Purchase Applications Payment Index (PAPI) measures how new monthly mortgage payments vary across…

[peaceliliesandtea]

the thing about declinism is it’s hard not to buy into it when it feels like everything is declining!!!!!

[gommyworm]

:^}

[petnews2day]

Home mortgages: Brits deal with 'increasing' payments as rate of interest increase - how to cut expenses|Personal Financing|Financing

New Post has been published on https://petnews2day.com/pet-industry-news/pet-financial-news/home-mortgages-brits-deal-with-increasing-payments-as-rate-of-interest-increase-how-to-cut-expensespersonal-financingfinancing/?utm_source=TR&utm_medium=Tumblr+%230&utm_campaign=social

Home mortgages: Brits deal with 'increasing' payments as rate of interest increase - how to cut expenses|Personal Financing|Financing

Rate of interest have actually increased in current months as the nation’s continuous expense of living crisis reveals no indications of decreasing. Those with home loan payments are preparing to pay more in the months ahead as this looks most likely to continue. Professionals are sharing crucial recommendations regarding how individuals can minimize their expenses […]

See full article at https://petnews2day.com/pet-industry-news/pet-financial-news/home-mortgages-brits-deal-with-increasing-payments-as-rate-of-interest-increase-how-to-cut-expensespersonal-financingfinancing/?utm_source=TR&utm_medium=Tumblr+%230&utm_campaign=social #PetFinancialNews

[theinfamousdoctorf]

Guys... I don’t think it’s hyperbole to say I’m panicking. I just don’t have the money. I work 40 hours a week and my partner is only getting a paltry 24. Our boss put her at a different site and we basically have to struggle until he can find something else for her to do. We share a vehicle and I have a very long commute to my work so that also limits our options. We’re no contact with her abusive mother and mine just won’t help. I currently have a little more then $1200 and the mortgage has to take priority. My car payment I don’t get a paper bill but it’s $334. Right now I’ve got no other choice then begging. My partner just used her last few dollars on half a tank of gas for me to get to work tonight.

Please help if you can. Reblog if nothing else. Remember; likes don’t increase visibility.

[simply-ivanka]

How the Biden-Harris Economy Left Most Americans Behind

A government spending boom fueled inflation that has crushed real average incomes.

By The Editorial Board -- Wall Street Journal

Kamala Harris plans to roll out her economic priorities in a speech on Friday, though leaks to the press say not to expect much different than the last four years. That’s bad news because the Biden-Harris economic record has left most Americans worse off than they were four years ago. The evidence is indisputable.

President Biden claims that he inherited the worst economy since the Great Depression, but this isn’t close to true. The economy in January 2021 was fast recovering from the pandemic as vaccines rolled out and state lockdowns eased. GDP grew 34.8% in the third quarter of 2020, 4.2% in the fourth, and 5.2% in the first quarter of 2021. By the end of that first quarter, real GDP had returned to its pre-pandemic high. All Mr. Biden had to do was let the recovery unfold.

Instead, Democrats in March 2021 used Covid relief as a pretext to pass $1.9 trillion in new spending. This was more than double Barack Obama’s 2009 spending bonanza. State and local governments were the biggest beneficiaries, receiving $350 billion in direct aid, $122 billion for K-12 schools and $30 billion for mass transit. Insolvent union pension funds received a $86 billion rescue.

The rest was mostly transfer payments to individuals, including a five-month extension of enhanced unemployment benefits, a $3,600 fully refundable child tax credit, $1,400 stimulus payments per person, sweetened Affordable Care Act subsidies, an increased earned income tax credit including for folks who didn’t work, housing subsidies and so much more.

The handouts discouraged the unemployed from returning to work and fueled consumer spending, which was already primed to surge owing to pent-up savings from the Covid lockdowns and spending under Donald Trump. By mid-2021, Americans had $2.3 trillion in “excess savings” relative to pre-pandemic levels—equivalent to roughly 12.5% of disposable income.

So much money chasing too few goods fueled inflation, which was supercharged by the Federal Reserve’s accommodative policy. Historically low mortgage rates drove up housing prices. The White House blamed “corporate greed” for inflation that peaked at 9.1% in June 2022, even as the spending party in Washington continued.

In November 2021, Congress passed a $1 trillion bill full of green pork and more money for states. Then came the $280 billion Chips Act and Mr. Biden’s Green New Deal—aka the Inflation Reduction Act—which Goldman Sachs estimates will cost $1.2 trillion over a decade. Such heaps of government spending have distorted private investment.

While investment in new factories has grown, spending on research and development and new equipment has slowed. Overall private fixed investment has grown at roughly half the rate under Mr. Biden as it did under Mr. Trump. Manufacturing output remains lower than before the pandemic.

Magnifying market misallocations, the Administration conditioned subsidies on businesses advancing its priorities such as paying union-level wages and providing child care to workers. It also boosted food stamps, expanded eligibility for ObamaCare subsidies and waved away hundreds of billions of dollars in student debt. The result: $5.8 trillion in deficits during Mr. Biden’s first three years—about twice as much as during Donald Trump’s—and the highest inflation in four decades.

Prices have increased by nearly 20% since January 2021, compared to 7.8% during the Trump Presidency. Inflation-adjusted average weekly earnings are down 3.9% since Mr. Biden entered office, compared to an increase of 2.6% during Mr. Trump’s first three years. (Real wages increased much more in 2020, but partly owing to statistical artifacts.)

Higher interest rates are finally bringing inflation under control, which is allowing real wages to rise again. But the Federal Reserve had to raise rates higher than it otherwise would have to offset the monetary and fiscal gusher. The higher rates have pushed up mortgage costs for new home buyers.

Three years of inflation and higher interest rates are stretching American pocketbooks, especially for lower income workers. Seriously delinquent auto loans and credit cards are higher than any time since the immediate aftermath of the 2008-09 recession.

Ms. Harris boasts that the economy has added nearly 16 million jobs during the Biden Presidency—compared to about 6.4 million during Mr. Trump’s first three years. But most of these “new” jobs are backfilling losses from the pandemic lockdowns. The U.S. has fewer jobs than it was on track to add before the pandemic.

What’s more, all the Biden-Harris spending has yielded little economic bang for the taxpayer buck. Washington has borrowed more than $400,000 for every additional job added under Mr. Biden compared to Mr. Trump’s first three years. Most new jobs are concentrated in government, healthcare and social assistance—60% of new jobs in the last year.

Administrative agencies are also creating uncertainty by blitzing businesses with costly regulations—for instance, expanding overtime pay, restricting independent contractors, setting stricter emissions limits on power plants and factories, micro-managing broadband buildout and requiring CO2 emissions calculations in environmental reviews.

The economy is still expanding, but business investment has slowed. And although the affluent are doing relatively well because of buoyant asset prices, surveys show that most Americans feel financially insecure. Thus another political paradox of the Biden-Harris years: Socioeconomic disparities have increased.

Ms. Harris is promising the same economic policies with a shinier countenance. Don’t expect better results.

[cathkaesque]

Former miner Dave Roper (aka Donkey Dave) recounted the heartbreaking experience of burying his child in a stranger's grave after being denied a funeral grant by the DHSS for being on strike. The article states that after growing pressure this policy was reversed in October 1984.

However, this is not the full story. The amendment which restored funeral support for strikers on one hand also tried to claw back mortgage relief with the other. 

David Willetts, a member of Thatcher's Policy Unit, wrote "The DHSS anyway have to amend the regulations to allow them to meet funeral expenses of relations of strikers following the hard cases publicised in the press. It would be politically neat to bring out one amendment which both gave concessions for funeral expenses and tightened up the regime for mortgage payments."

David Willetts would go on to be Universities Minister in David Cameron's cabinet, and oversee the increase of tuition fees to £9,000 per year. He currently sits in the House of Lords.

This is why the Miners' Strike matters - the same people who made decisions during the strike are still in positions of power today, and they still haven't even acknowledged the violence that was done against mining communities in 1984.

[bitchesgetriches]

{ MASTERPOST } Everything You Need to Know about Credit and Credit Cards

Understanding credit

Dafuq Is Credit and How Do You Bend It to Your Will? 

Dafuq Is a Down Payment? And Why Do You Need One to Buy Stuff?

Ask the Bitches: Should I Get a Loan Even Though I Can Afford To Pay Cash?

Season 2, Episode 10: “Which Is Smarter: Getting a Loan? or Saving up to Pay Cash?”

Ask the Bitches: What’s the Difference Between Credit Checks and Credit Monitoring? 

When (And How) To Try Refinancing or Consolidating Student Loans

Season 3, Episode 7: “I’m Finished With the Basic Shit. What Are the Advanced Financial Steps That Only Rich People Know?”

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name 

Using credit

How to Instantly Increase Your Credit Score…For Free 

How to Build Good Credit Without Going Into Debt 

Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt 

Season 1, Episode 3: “My Parents Have Bad Credit. Should I Help by Co-signing Their Mortgage?” 

Season 3, Episode 2: “I Inherited Money. Should I Pay Off Debt, Invest It, or Blow It All on a Car?”

Season 2, Episode 2: “I’m Not Ready to Buy a House—But How Do I *Get Ready* to Get Ready?”

Credit cards

A Hand-holding Guide To Getting Your First Credit Card 

63% of Millennials Are Making a Big Mistake With Credit Cards

Let’s End This Damaging Misconception About Credit Cards

The Best Way To Pay off Credit Card Debt: From the Snowball To the Avalanche

Credit Card Companies HATE Her! Stay Out of Credit Card Debt With This One Weird Trick 

Season 4, Episode 3: “My credit card debt is slowly crushing me. Is there any escape from this horrible cycle?” 

Here’s What to Do With Those Credit Card Pre-approval Offers You Get in the Mail

We’ll periodically update this masterpost as we continue to write tutorials and answer questions on credit. So if there’s anything you’re confused about, keep the questions coming!

And if we’ve helped you increase your credit score or pay off your credit card debt, consider tossing a coin to your Bitches through our PayPal. It ensures we can pay our lovely assistant and keep bringing you free articles and episodes like those above.

Toss a coin to your Bitches on PayPal

[subukunojess]

Help Me and My Family With Billing and Returning to School

Hello. My name is Jessica. I am a 30 autistic asexual Hispanic woman who is currently working on a Master's degree in Professional and Creative Writing. I usually do not do this, but I really need help.

A few months ago, my family and I moved upstate and bought our first home after living in apartments every since I was born. We lived in public housing for twenty years until a miracle happened and we were able to get a home which I am striving for it to be our forever home where we will be safe and happy.

A lot of things happened recently:

The new bills we have to pay plus paying for mortgage has taken a toll on us.

Due to mental and emotional health issues, I messed up my last semester and I have a debt of $6,300.00 US dollars as of this day (4/12) will go to collections since I didn't have the $523 to do a payment plan.

My grandmother passed away weeks ago and with sudden financial decisions, we had to cut down on a lot of expenses.

Currently, I am working in a part-time job that I use my checks to pay for my bills and to help pay my family's bills. With my deteriorating self-esteem and increased stress, it is difficult for me to support my family.

Please help me so that my family and I won't be homeless. I need money to pay off my debt so I can continue my education, finish my degree, and maintain a more stable life.

My goal is $10,000. $6,300 will pay off my college debt while the rest will be used to pay our bills and mortgage. Please share and support however you can. I am also going to look into doing commissions.

p4yp4l

g34unDm3

GOAL: 20/10,000

[truth-has-a-liberal-bias]

...

Two things are driving the divide between how homeowners and renters experience inflation.

First, while most homeowners’ monthly payments have not risen, the cost of renting has surged. Rent jumped 11% in 2022 from the year before. It also climbed higher in 2023, although at a significantly slower pace. Rent prices increased just 0.2% last year, according to Realtor.com.

As of November, the price of rent nationally was up 22% compared to pre-pandemic levels, according to Realtor.com.

Meanwhile, because most homeowners have a fixed-rate loan, their costs have not changed even as mortgage rates have soared during the Fed’s historic effort to rein in inflation. [...]

[am-i-the-asshole-official]

WIBTA if I raised my brother's "rent"?

Longer version: I (30ish) might be losing my current paycheck in the next couple months with no idea when I'd be able to get another job, and am contemplating asking my brother (30ish) for a bit more than he currently pays me so I can manage to pay the mortgage with less worries.

6 years ago I managed to scrape together enough to buy the apartment we were renting at the time- my brother had no job, credit, or savings really at the time so everything is fully in my name and he just pays me what his half of the rent was when we were renting. Since the monthly mortgage + HOA dues is less than what we were paying for rent, with both of us contributing the same amount as we did then it covers the payments great and I am able to put a bit extra towards it each month.

But now 6 years later- due to health problems I took 3 months off end of last year (unpaid- which cut into my savings) and even though I am back at work now, I'm guessing due to continuing health issues I will have to fully quit in the next few months. Plus, I have several thousand in medical bills (after the hospital finishes fighting with insurance) coming my way soon. On the other side, my brother now has a full time job which while the pay isn't anything fantastic is enough for him to live comfortably on. While I have enough savings to live on for a bit and keep paying what I was towards the mortgage, just in case things go on longer I'm planning on dropping down to the minimum mortgage payment to try and stretch my money as much as possible. This leads to my dilemma- minimum payment wouldn't fully be covered by my brother's informal "rent", and I would still be paying towards it either way, but an extra $50 a month from him would make a significant impact.

Why I might be the asshole- raising my brother's expenses (when I leave my job) for basically personal reasons, when technically I could still get by on savings for several months.

Why I might not be the asshole- in 6 years his payment (and mine) has gone up once a very small amount due to increased HOA dues, other than that this would be the first time it goes up which is unusual for the area. Plus, even with the increase it is still roughly $250 cheaper than he would be able to find housing anywhere else in town right now.

What are these acronyms?

[meetbytheriver]

Bath school massacre - May 18th 1927

The attack itself began around 8:45am May 18th 1927 in which Andrew Kehoe firebombed his own farm and house using wired homemade pyrotol firebombs (right image) also murdering his wife Nellie Price Kehoe, placing her body in a wheelbarrow near their chicken coop. Kehoe then went on to detonate various explosives he had planted over the course of the previous summer within the north wing of Bath Consolidated school, with roughly an additional 230kg/500 lbs of explosives failing to set off in the southern wing (left image). Around 30mins after the first explosion, Kehoe drove up to the school and detonated explosives within his own truck, killing himself, Nelson McFarren (a retired farmer) and Cleo Clayton who was just 8 years old. The attacks killed 38 children, 6 adults and injured at least 58 other people.

Background:

After losisng the election for township clerk, April 5th 1926, Kehoe (according to his neighbor, Ellsworth) began his plot to blow up Bath Consolidated school. During this time, he bought: more than a ton of pyrotol (an explosive used by farmers); two boxes of dynamite; and a .30-caliber Winchester bolt-action rifle.

The school board member, M. W. Keyes stated:

"He was an experienced electrician and the board employed him in November to make some repairs on the school lighting system. He had ample opportunity then to plant the explosives and lay the wires for touching it off."

Having access to the school over the summer of 1926, Kehoe planted various explosvies underneath the school and, being a farmer, owning large ammounts of dynamite would not be viewed as suspiscious - with neighbors even reporting hearing explosions on the farm. After the attack, investigators recovered: a container of gasoline rigged with a tube in the school's basement; explosives in six lengths of eavestrough pipe; and three bamboo fishing rods concealed in the basement ceiling.

The day before the attack, Kehoe loaded the back seat of his truck with metal debris with the potential to produce shrapnel during an explosion, also buying new tires to transport explosives. Throughout the day, Kehoe made several trips to the school, the township, his house and also places he could buy additional explosives. At midnight, it was also reported a man (presumably Kehoe) could be seen walking into the school carrying objects inside.

Andrew Kehoe:

After graduating, Kehoe suffered a head injury in a fall and was semi-conscious or in a coma for a period of several weeks, returning to work on his fathers farm rather than continuing working as an electrician. Kehoe had a reputation for being tight with money, and was elected in 1924 as a trustee on the school board for three years and additionally treasurer for one year, arguing strongly for lower taxes. It is suspected the motives for the attack was an increase in his taxes, aswell as being defeated in the April 5, 1926, election for being town clerk. Kehoe's neighbor, A. McMullen, stated that Kehoe had seemingly stopped working on his farm altogether for most of the preceding year, and he had speculated that Kehoe was planning to commit suicide. Furthermore, his wife had become chronically ill with tuberculosis which, at the time, had no treatment - increasing Kehoes debt causing him to cease depositing into his mortgage and homeowner's insurance payments. Potentially sueding him further to commit the bombing.

[phoenixyfriend]

Ko-Fi prompt from Isabelo:

Hi! I'm new to the workforce and now that I have some money I'm worried it's losing its value to inflation just sitting in my bank. I wanted to ask if you have ideas on how to counteract inflation, maybe through investing?

I've been putting this off for a long time because...

I am not a finance person. I am not an investments person. I actually kinda turned and ran from that whole sector of the business world, at first because I didn't understand it, and then once I did understand it, because I disagreed with much of it on a fundamental level.

But... I can describe some factors and options, and hope to get you started.

I AM NOT LEGALLY QUALIFIED TO GIVE FINANCIAL ADVICE. THIS IS NOT FINANCIAL ADVICE.

What is inflation, and what impacts it?

Inflation is the rate at which money loses value over time. It's the reason something that cost 50 cents in the 1840s costs $50 now.

A lot of things do impact inflation, like housing costs and wage increases and supply chains, but the big one that is relevant here is federal interest rates. The short version: if you borrow money from the government, you have to pay it back. The higher the interest rates on those loans, the lower inflation is. This is for... a lot of reasons that are complicated. The reason I bring it up is less so:

The government offers investments:

So yeah, the feds can impact inflation, but they also offer investment opportunities. There are three common types available to the average person: Bonds, Bills, and Notes. I'll link to an article on Investopedia again, but the summary is as follows: You buy a bill, bond, or note from the government. You have loaned them money, as if you are the bank. Then, they give it back, with interest.

Treasury Bills: shortest timeframe (four weeks to a year), and lowest return on investment. You buy it at a discount (let's say $475), and then the government returns the "full value" that the bond is, nominally (let's say $500). You don't earn twice-yearly interest, but you did earn $25 on the basis of Loaning The Government Some Cash.

Treasury Notes: 2-10 year timeframe. Very popular, very stable. Banks watch it to see how they should plan the interest rates for mortgages and other large loans. Also pretty high liquidity, which means you can sell it to someone else if you suddenly need the cash before your ten-year waiting period is up. You get interest payments twice a year.

Treasury Bonds: 20-30 years. This is like... the inverse of a house mortgage. It takes forever, but it does have the highest yield. You get interest payments twice a year.

Why invest money into the US Treasury department, whether through the above or a different government paper? (Savings bonds aren't on sold the set schedule that treasury bonds are, but they only come in 30-year terms.)

It is very, very low risk. It is pretty much the lowest risk investment a person can make, at least in the US. (I'm afraid I don't know if you're American, but if you're not, your country probably has something similar.)

Interest rates do change, often in reaction or in relation to inflation. If your primary concern is inflation, not getting a high return on investment, I would look into government papers as a way to ensure your money is not losing value on you.

This is the website that tells you the government's own data for current yield and sales, etc. You can find a schedule for upcoming auctions, as well.

High-yield bank accounts:

Savings accounts can come with a pretty unremarkable but steady return on investment; you just need to make sure you find one that suits you. Some of the higher-yield accounts require a minimum balance or a yearly fee... but if you've got a good enough chunk of cash to start with, that might be worth it for you.

They are almost as reliable as government bonds, and are insured by the government up to $250,000. Right now, they come with a lower ROI than most bonds/bills/notes (federal interest rates are pretty high at the moment, to combat inflation). Unlike government papers, though, you can deposit and withdraw money from a savings account pretty much any time.

Certificates of Deposit:

Okay, imagine you are loaning money to your bank, with the fixed term of "I will get this money back with interest, but only in ten years when the contract is up" like the Treasury Notes.

That's what this is.

Also, Investopedia updates near-daily with the highest rates of the moment, which is pretty cool.

Property:

Honestly, if you're coming to me for advice, you almost definitely cannot afford to treat real estate as an investment thing. You would be going to an actual financial professional. As such... IDK, people definitely do it, and it's a standby for a reason, but it's not... you don't want to be a victim of the housing bubble, you know? And me giving advice would probably make you one. So. Talk to a professional if this is the route you want to take.

Retirement accounts:

Pension accounts are a kind of savings account. You've heard of a 401(k)? It's that. Basically, you put your money in a savings account with a company that specializes in pensions, and they invest it in a variety of different fields and markets (you can generally choose some of this) in order to ensure that the money grows enough that you can hopefully retire on it in fifty years. The ROI is usually higher than inflation.

These kinds of accounts have a higher potential for returns than bonds or treasury notes, buuuuut they're less reliable and more sensitive to market fluctuations.

However, your employer may pay into it, matching your contribution. If they agree to match up to 4%, and you pay 4% of your paycheck into an pension fund, then they will pay that same amount and you are functionally getting 8% of your paycheck put into retirement while only paying for half of it yourself.

Mutual Funds:

I've definitely linked this article before, but the short version is:

An investment company buys 100 shares of stock: 10 shares each in 10 different "general" companies. You, who cannot afford a share of each of these companies, buy 1 singular share of that investment company. That share is then treated as one-tenth of a share of each of those 10 "general" companies. You are one of 100 people who has each bought "one stock" that is actually one tenth of ten different stocks.

Most retirement funds are actually a form of mutual fund that includes employer contributions.

Pros: It's more stable than investing directly in the stock market, because you can diversify without having to pay the full price of a share in each company you invest in.

Cons: The investment company does get a cut, and they are... often not great influences on the economy at large. Mutual funds are technically supposed to be more regulated than hedge funds (which are, you know, often venture capital/private equity), but a lot of mutual funds like insurance companies and pension funds will invest a portion of their own money into hedge funds, which is... technically their job. But, you know, capitalism.

Directly investing in the stock market:

Follow people who actually know what they're doing and are not Evil Finance Bros who only care about the bottom line. I haven't watched more than a few videos yet, but The Financial Diet has had good energy on this topic from what I've seen so far, and I enjoy the very general trends I hear about on Morning Brew.

That said, we are not talking about speculative capital gains. We are talking about making sure inflation doesn't screw with you.

DIVIDENDS are profit that the company shares to investors every quarter. Did the company make $2 billion after paying its mortgages, employees, energy bill, etc? Great, that $2 billion will be shared out among the hundreds of thousands of stocks. You'll probably only get a few cents back per stock (e.g. Walmart has been trading at $50-$60 for the past six months, and their dividends have been 57 cents and then 20.75 cents), but it adds up... sort of. The Walmart example is listed as having dividends that are lower than inflation, so you're actually losing money. It's part of why people rely on capital gains so much, rather than dividends, when it comes to building wealth.

Blue Chip Stocks: These are old, stable companies that you can expect to return on your investment at a steady rate. You probably aren't going to see your share jump from $5 to $50 in a year, but you also probably won't see it do the reverse. You will most likely get reliable, if not amazing, dividends.

Preferred Stocks: These are stock shares that have more reliable dividends, but no voting rights. Since you are, presumably, not a billionaire that can theoretically gain a controlling share, I can't imagine the voting rights in a given company are all that important anyway.

Anyway, hope this much-delayed Intro To Investing was, if not worth the wait, at least, a bit longer than you expected.

Hey! You got interest on the word count! It's topical! Ish.

[phantomrose96]

Oh while I'm on U.S. economics, I have another thing that bugs the hell out of me: the hiking of mortgage interest rates.

For those who don't know, mortgage interest rates dropped low during the pandemic. Which is not all sunshine since it resulted in many bidding wars and a ton of way-over-asking offers in competitive areas, but it put home-ownership way more within reach for a lot of people.

Then the fed started to pee their pants over inflation, and hiked their rates up, prompting mortgage companies to follow.

Here's a chart of mortgage interest rates over the last 4 years

It hit a trough at 2.65% on average in early January 2021, and then you see it hiked itself way back up, now chilling at 6.27%

For context on how different these are: let's use an example of a $400,000 home - someone pays 20% down ($80,000) in cash, and finances the remaining 80% ($320,000).

Monthly payments at 2.65%:

This results in paying back, in total, $464,040. You'll notice that's well over the initial $320,000, and that's because of the interest paid over those 30 years.

Now, monthly payments at 6.27%:

This results in paying back, in total, $710,640. That's more than twice the initial loan of $320,000.

And, of course, it means the same exact property which could be paid for with a monthly budget of ~$1,300 in early 2021 now requires a monthly budget of ~$2,000 in 2023.

Also, those pandemic lows were an anomaly... Historically, mortgage interest rates were on average HIGHER than 6.27% - but also, historically, wages were much better relative to the prices of homes and people could afford the high interest rates (with the exception of the people who got screwed over in the 2008 housing market meltdown... There's a really good Cold Fusion video on that.)

And because these low interest rates were an anomaly, they may never come back...

So with mortgage interest rates going up, home-buying becomes harder. When home-buying becomes harder, rents increase (because renters have no alternative).

So who DOESN'T get affected?

ENTITIES THAT CAN PAY IN ALL CASH.

They need no mortgage. They pay the sticker price on-spot with no interest applying to them. And I say ENTITIES because, sure, some people can buy their home in all-cash. But a huge number of the entities that can buy in all cash are BIG investment companies--the Blackrocks and the Mega-landlords who scoop up properties to sit on, rent out, and turn for a profit later like it's a piece of stock, and not a habitable property...

Anyway I don't have a conclusion for this. Fix wages, or bring interest rates back down, or kill Blackrock. Preferably all 3.

[darkmaga-retard]

California Democrats are forging on in transforming the Golden State into an illegal alien sanctuary zone, completely with zero-down mortgages so illegals can buy up all of the state's housing.

Assembly Bill 1840 was passed by the California Senate Appropriations Committee along partisan lines with its five Democrats voting for the change and the remaining two Republicans voting against it. If it makes it all the way through the state legislature, AB 1840 would amend the California Dream for All Shared Appreciation Loan program to include foreigners.

Authored by Assemblyman Joaquin Arambula, a Democrat, AB 1840 would provide down payment assistance for illegal aliens up to 20 percent of a home's purchase price as a down payment for first-time buyers. There are no monthly payments required and no accrued interest as the original loan amount plus 20 percent of any increase in home value is only due when the primary mortgage is refinanced or the house is sold.

This means that illegal alien families will be able to "purchase" homes in California with free money; never have to pay a single monthly payment or interest; and live in the home over a lifetime without having to pay a single penny out of pocket.

"The social and economic benefits of homeownership should be available to everyone," Arambula said. "As such, the California Dream for All Program should be available to all."

[dertaglichedan]

A $150,000 House in 1988 Now Costs $707,500 Thank You Fed

The Fed has grossly distorted the housing market and no fix is in sight. A couple of images will explain.

Chart data from Case-Shiller, mortgage calculation based on Fannie Mae 30-year mortgage rates, chart by Mish

Home Price Calculation Notes

Case-Shiller measures repeat sales of the same home over time.

Case-Shiller is a much better, but less timely measure than median or average home price. However, the measure lags. Recent data is through May representing sales in February, March, and April.

The price above reflects the increasing value of the Case-Shiller index over time.

Mortgage Payment and Mortgage Rate

The above chart represents the mortgage payment of the same house as the lead chart reflecting the changing price and interest rate over time.