Fed raises rates 75 bps

[luvmyhawks]

As expected.

Fed approves 0.75-point hike to take rates to highest since 2008 and hints at change in policy ahead

Many are hoping for a "step-down" in policy that could see a rate increase of half a point at the December meeting and then a few smaller hikes in 2023.

www.cnbc.com

 

[themelrosemauler]

JPow says pivot deez nutz.

 

[Joes Place]

goddammit

My mortgage is going up another $0!!!!!

What is that, 6 times now it's gone up $0!???

 

[luvmyhawks]

JPow says pivot deez nutz.

Pretty much. Full steam ahead.

 

[StormHawk42]

Fed’s comments have been pretty dovish though. Hopefully ratchet it down in December if CPI shows any improvement.

Down* as in maybe only a .25 or .50 increase before pausing.

 

[hydro2.0]

7.5 percent for a 30 year fixed.

that’s a no from me dawg.

I’ll keep my refinanced 3.2 percent yo

 

[abby97]

goddammit

My mortgage is going up another $0!!!!!

What is that, 6 times now it's gone up $0!???

Well, it's a good thing you locked into your rate prior to Biden.

 

[markfromj]

Some of you have mortgages?

 

[Lindemann]

They've got to be near the end of the aggressive rate hikes.

Fed’s comments have been pretty dovish though. Hopefully ratchet it down in December if CPI shows any improvement.

Down* as in maybe only a .25 or .50 increase before pausing.

Yeah, maybe 1 more .75% hike before they start tapering off, if that. Hopefully they're done hiking by spring.

 

[srams21]

7.5 percent for a 30 year fixed.

that’s a no from me dawg.

I’ll keep my refinanced 3.2 percent yo

Yea, I can't see how the housing market continues to hold up if rates keep going up. The housing market has slowed down but I see a significant correction ahead.

 

[QChawks]

Some of you have mortgages?

kakert has been letting in way too many poors recently

 

[ICWestfan]

Fed’s comments have been pretty dovish though. Hopefully ratchet it down in December if CPI shows any improvement.

Down* as in maybe only a .25 or .50 increase before pausing.

I thought was the plan this time?

Also, will this depress the housing markets more? Asking for a friend who is going to start looking in Florida.

 

[Joes Place]

Well, it's a good thing you locked into your rate prior to Biden.

Trump's Fed chair is the one raising the rates.

 

[TennNole17]

Crappy time to be me (homebuyer)

 

[luvmyhawks]

I thought was the plan this time?

Also, will this depress the housing markets more? Asking for a friend who is going to start looking in Florida.

JMO, which means very little. I think the downturn in the Real estate market is only beginning. Tell your friend to hold out for 6 months or so, if possible.

 

[franklinman]

With no debt, no sweat.

 

[luvmyhawks]

Crappy time to be me (homebuyer)

Right this moment, perhaps. But if you can wait 6-9 months, should be a golden opportunity I would think. May pay a little higher on the rate initially, but they will come back down and you can refi at 5% down the road.

 

[TennNole17]

It’s good for me as it will drive down prices. It’s bad for me in that I’m not your typical HORT member and don’t make millions- as prices decrease but interest goes up- my purchase power also goes down

 

[Joes Place]

JMO, which means very little. I think the downturn in the Real estate market is only beginning. Tell your friend to hold out for 6 months or so, if possible.

I sold at the 2005-2007 dropout (moved)

Rented until things turned around in 2013 and bought cheap.
House is now about 2x that purchase price.

So, I would not bother buying now at high interest rates and overpriced valuations. Wait for the bubble to fully burst and buy low. Don't worry about your interest rate if you buy low - rates will drop again and you can refinance then. And maintain/gain more equity faster.

 

[Joes Place]

JMO, which means very little. I think the downturn in the Real estate market is only beginning. Tell your friend to hold out for 6 months or so, if possible.

Wait until things are bottoming out. Might be 6-12 months, or more. But prices will be dropping when rates have gone up 4-5%. That's reality.

 

[fredjr82]

7.5 percent for a 30 year fixed.

that’s a no from me dawg.

I’ll keep my refinanced 3.2 percent yo

I got 4.5% in August and was happy with that. I don't have the credit of a dirty river rat, so that helped. You should stick with what you have, I agree.

 

[srams21]

It’s good for me as it will drive down prices. It’s bad for me in that I’m not your typical HORT member and don’t make millions- as prices decrease but interest goes up- my purchase power also goes down

Yep but prices will come down. Most people buy the monthly payment more than the actual purchase price.

When interest rates were under 3%, a 500k house in IC cost about $2,400 per month. Assuming 20% down.

Now, with rates up around 7%, it costs about $3,500 per month. Also assuming 20% down.

That is a hell of a difference on a monthly payment, which means many people are being priced out at current prices. I'm with @luvmyhawks that within the next 6-9 months, we will see prices continue to fall. Especially as mortgage rates go up and I think they will. I think they hit 9% at some point in the early part of 2023.

 

[thewop]

Going to have to start paying cash for real estate pretty soon...

It's no longer assured you can out-invest the debt.

 

[ThorneStockton]

Right this moment, perhaps. But if you can wait 6-9 months, should be a golden opportunity I would think. May pay a little higher on the rate initially, but they will come back down and you can refi at 5% down the road.

I hope so. Will likely be in the market for the first time in a year or so, if rates are still in the 7% range, I'll rent.

 

[abby97]

Trump's Fed chair is the one raising the rates.

But he isn't the one that is trying to stop domestic oil production and voted for insane government spending.

 

[franklinman]

Yep but prices will come down. Most people buy the monthly payment more than the actual purchase price.

When interest rates were under 3%, a 500k house in IC cost about $2,400 per month. Assuming 20% down.

Now, with rates up around 7%, it costs about $3,500 per month. Also assuming 20% down.

That is a hell of a difference on a monthly payment, which means many people are being priced out at current prices. I'm with @luvmyhawks that within the next 6-9 months, we will see prices continue to fall. Especially as mortgage rates go up and I think they will. I think they hit 9% at some point in the early part of 2023.

No way it 6-9 months, closer to 2 years or more. My interest rate on my 1st house was 12.5 % and it took over 2 years before it started going down.

 

[srams21]

No way it 6-9 months, closer to 2 years or more. My interest rate on my 1st house was 12.5 % and it took over 2 years before it started going down.

The 6-9 months I referred to is when I see prices start to really go down, not rates. Rates will take another year or two after that I think.

 

[mauricehawki]

Closed on a house today. 7% fixed for 20 years. I doubt home values will decrease in my area so went ahead and purchased now and hope to refinance within 1-2 years at lower rate.

 

[DogBoyRy]

As expected.

Fed approves 0.75-point hike to take rates to highest since 2008 and hints at change in policy ahead

Many are hoping for a "step-down" in policy that could see a rate increase of half a point at the December meeting and then a few smaller hikes in 2023.

www.cnbc.com

Market barfed on it.

 

[HawkeyeShawn]

Closed on a house today. 7% fixed for 20 years. I doubt home values will decrease in my area so went ahead and purchased now and hope to refinance within 1-2 years at lower rate.

This is the way.

 

[hydro2.0]

I got 4.5% in August and was happy with that. I don't have the credit of a dirty river rat, so that helped. You should stick with what you have, I agree.

you seem more like a rental type. Surprised you got such a good rate on your mobile home

 

[Ree4]

Closed on a house today. 7% fixed for 20 years. I doubt home values will decrease in my area so went ahead and purchased now and hope to refinance within 1-2 years at lower rate.

Time in the market beats timing the market. Hopefully that adage continues to hold true.

 

[BelemNole]

Crappy time to be me (homebuyer)

Actually, it's a great time to be a buyer. Housing prices are starting to drop. People aren't fighting over homes anymore. Find the home you want, make a decent offer and when they accept get yourself an ARM and wait for the rates to start dropping again next year.

 

[luvmyhawks]

Fed’s comments have been pretty dovish though. Hopefully ratchet it down in December if CPI shows any improvement.

Down* as in maybe only a .25 or .50 increase before pausing.

Unfortunately, they said they can likely slow the increases, but now their target rate is higher and for longer than what they thought back in September. Ouch. Markets didn't like it at all.

 

[HawkeyesAndCubs1023]

I live in one of the hot, warm-weather markets with breakneck growth over the last few years, and was told repeatedly by a couple of real estate agents that "Prices will not go down, because we have such an inventory shortage."

I expressed doubt that the current levels of appreciation could continue as the pool of buyers who make enough money to pay those prices is getting smaller and smaller, and home price appreciation is greatly outpacing wage appreciation.

Their only rebuttal was the canned "we have an inventory shortage" response.

It's pretty clear that the majority of that industry (real estate agents, mortgage brokers, title personnel) only paint a rosy forecast, because it is in their best interest to do so.

 

[joelbc1]

Crappy time to be me (homebuyer)

Life is mostly timing.

 

[MitchLL]

Trad is gonna be on food stamps if the real estate market gets worse. Probably exaggerate that mileage reimbursement again.

BTW...typically Wall St has seen a healthy jump the day after rate increases.

We'll see how tomorrow goes.

 

[luvmyhawks]

Trad is gonna be on food stamps if the real estate market gets worse. Probably exaggerate that mileage reimbursement again.

BTW...typically Wall St has seen a healthy jump the day after rate increases.

We'll see how tomorrow goes.

And the last couple times we had healthy returns day of fed decision, we gave it all back the next day.

 

[Joes Place]

But he isn't the one that is trying to stop domestic oil production and voted for insane government spending.

Domestic oil production has nothing to do with current prices.
At all.

 

[FlickShagwell]

kakert has been letting in way too many poors recently

Well, we know most of them are just NC handles. Shout out to @FranCantCoach who just "joined" today, lol.