[rustyp]

Originally Posted by JMintzer

You mean when Covid first hit? Ummm... Okay...

Originally Posted by rustyp

100% correct and the market has steadily increased 73% since that low of March 16 2020. FYI Covid hit the USA January 2020 - 3 months before the market low point.

Originally Posted by Rainger99

The shutdown started on March 13, 2020. That was when we shut down travel to and from Europe and people were sent home for two weeks to “flatten the curve.”

And that is correct also - The USA shutdown travel after 40 other worldwide countries had already shutdown their travel.

[Stu from NYC]

Originally Posted by kkingston57

Banks got greedy and did not do the proper underwriting.

And now the govt will help to find more homes to sell to people who cannot afford them.

Makes no sense.

[Rainger99]

Originally Posted by Papa_lecki

“Starting in May, a new federal rule will upend the current structure of the Loan-Level Price Adjustment (LLPA) matrix. Homebuyers with a good credit score could see their monthly mortgage payment rise by over $60 a month, while riskier borrowers will get more favorable mortgage terms because their fees were reduced.

It appears that homebuyers with good credit will soon have to pay higher mortgage rates and fees to subsidize people with riskier credit ratings.

If you have a credit score of 680 or higher you will have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000.

If you have a 30 year loan and you have good credit, you will pay an extra $14,400 over the life of the loan!

If you are considering a home loan and you have good credit, should you miss a credit card payment or utility payment to get under 680 and save yourself $14,400??

[Koapaka]

Originally Posted by Papa_lecki

House prices are certainly going to drop, with the new 1.00% added to the rate for mortgages of those with good credit

“Starting in May, a new federal rule will upend the current structure of the Loan-Level Price Adjustment (LLPA) matrix. Homebuyers with a good credit score could see their monthly mortgage payment rise by over $60 a month, while riskier borrowers will get more favorable mortgage terms because their fees were reduced. It's a move the Federal Housing Finance Agency (FHFA) hopes will address housing affordability challenges in the U.S., but it's come under scrutiny for being unfair and potentially ineffective.”

My people call it socialism.

[daniel200]

Home prices are like the stock market. They go up. They go down. Nothing matters until the day you sell.

[Velvet]

Originally Posted by Koapaka

My people call it socialism.

And other people call it punishment for good behavior. How dare you have good credit! What were you thinking when you payed your bills on time? And what about working hard so you can afford those bills in the first place?

Generally, people are fined for bad behavior, they didn’t stop at a stop sign etc. This new policy fines people for good behavior, for doing what they are supposed to do. What could possibly go wrong?

[MX rider]

Originally Posted by daniel200

Home prices are like the stock market. They go up. They go down. Nothing matters until the day you sell.

Exactly.
But home prices are leveling off pretty much everywhere. As far as TV go, I don't see prices dropping very much at all. Except for the people overpricing their homes thinking they can still ride the wave.

There's still a lot of boomers out there retiring or getting ready to retire like us. i think Florida will have a very vibrant real estate market for a while, just not white hot like it was a year ago.

[jimdecastro]

Originally Posted by Rainger99

Florida Housing Market Predictions 2023 | Next 5 years | Will it Crash?

Including here. I am building a home in Newell. Took 90 days and SEVERAL price drops to sell.

[Laker14]

Originally Posted by jimdecastro

Including here. I am building a home in Newell. Took 90 days and SEVERAL price drops to sell.

that information, by itself, does not tell us much.

For example, a few blocks from me, there is a home that has been on the market since November, and has had several price drops, from 460K, now down to 390K. However, upon looking at the price history, one learns that it was sold in November of 2017 for 260K.

Asking for 460K, 5 years later, is asking for a 77% increase in 5 years. Not succeeding in such a lofty goal is far from a "crash". Even now, after several "price drops", should they succeed in getting the current asking price, that would represent a 50% increase in 5 years.

True, that might have worked 2 years ago, but regressing from a "bubble" to more realistic, yet still quite handsome returns, does not a "crash" make.

[Two Bills]

Originally Posted by jimdecastro

Including here. I am building a home in Newell. Took 90 days and SEVERAL price drops to sell.

Bet you still made a profit though!

[Two Bills]

Wife and I have bought and sold quite a few properties over the years.
Main reasons houses do not sell quickly, is, location, disrepair, poor presentation, or overpriced.
If you have had no offers within first two to three weeks, one of those reasons is holding back the sale, in which case you hang on and hope, or correct the problem.
Location is the only variable you have no control over.

[rsmurano]

Originally Posted by rustyp

Stock market low was March 16 2020 - 8 months prior to the last presidential election.

Correct, but the “V” shape recovery was a few months after that, which if you were in the same funds/stocks at the end of 2020, you made a healthy profit.
Compare that market to todays market, well you can’t since we are 10-20% lower today compared to January 2021 and probably go down much lower this year

[oldtimes]

Originally Posted by Rainger99

It appears that homebuyers with good credit will soon have to pay higher mortgage rates and fees to subsidize people with riskier credit ratings.

If you have a credit score of 680 or higher you will have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000.

If you have a 30 year loan and you have good credit, you will pay an extra $14,400 over the life of the loan!

If you are considering a home loan and you have good credit, should you miss a credit card payment or utility payment to get under 680 and save yourself $14,400??

Interesting thought

[rogerrice60]

Originally Posted by Papa_lecki

House prices are certainly going to drop, with the new 1.00% added to the rate for mortgages of those with good credit

“Starting in May, a new federal rule will upend the current structure of the Loan-Level Price Adjustment (LLPA) matrix. Homebuyers with a good credit score could see their monthly mortgage payment rise by over $60 a month, while riskier borrowers will get more favorable mortgage terms because their fees were reduced. It's a move the Federal Housing Finance Agency (FHFA) hopes will address housing affordability challenges in the U.S., but it's come under scrutiny for being unfair and potentially ineffective.”

Communism has never benefited the masses!

[retiredguy123]

Originally Posted by Rainger99

It appears that homebuyers with good credit will soon have to pay higher mortgage rates and fees to subsidize people with riskier credit ratings.

If you have a credit score of 680 or higher you will have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000.

If you have a 30 year loan and you have good credit, you will pay an extra $14,400 over the life of the loan!

If you are considering a home loan and you have good credit, should you miss a credit card payment or utility payment to get under 680 and save yourself $14,400??

Question. Why can't mortgage companies lend their own money, without Government mortgage insurance, and charge a lower interest rate to customers who have a good credit rating and make a responsable down payment?