The monthly payment for a 500k mortgage today is... 3300/mo

[WarGamer]

The monthly payment for a 800k mortgage earlier this year was 3300/mo

Just wait until the FED raises the rate AGAIN later this year.





The Fed will tell you THIS is how inflation is defeated.

Defeated... in the same way that cancer is defeated when one burns to death in a house fire.

Jerome Powell must want Trump back in the White House really really bad...

[ck4829]

1. Billionaires cause inflation

Last edited Wed Sep 28, 2022, 01:40 PM - Edit history (1)

They have skewed the numbers so ridiculously high and that is what makes 3700 a month seem "normal"

https://deepblueleague.freeforums.net/board/107/billionaires-cause-inflation

[msongs]

2. on mortgage calulator.org 5% interest on 500,000 over 30 yrs is $2684/month

and thats with zero insurance, prop tax, pmi, zero down

[WarGamer]

3. Why do you think it's 5%??

I see 6.5% before the .75% rate increase...

I changed the OP to reflect the lowest rate I see on Google

Still... a payment for a 500k mortgage is the same as it was for 800k earlier this year

[GregariousGroundhog]

7. Rates around me are at 6.125% or 6.25% though your general argument is sound

If we assume a $75,000 household income, a family can afford:

$270,600 at 6.250% (+75 bps Sep 21)
$287,100 at 5.500% (+75 bps July 27)
$305,100 at 4.750% (+75 bps Jun 16)
$324,600 at 4.000% (+50 bps May 05)
$338,400 at 3.500% (+25 bps Mar 17)
$345,600 at 3.250%

The amount of house a family can afford has fallen by 21.7% over the past six months.

[TreasonousBastard]

4. Why must these little shitboxes around here cost 500K?

And where did the money come from for people to buy these things?

Around here, the town is against rental housing, and people who need housing are priced out by people buying 2nd or 3rd homes.

[WarGamer]

5. Some of us have been warning others...

When people MAKE MORE MONEY...

The prices of stuff goes up.

And municipalities don't give permits for block style apartment buildings or other lower cost housing.

Supply and demand.

At this moment... we need help on the supply side.

[MissB]

6. Seems affordable

Of course it doesn’t seem affordable.

I still use the metric of our first house price against any large purchase. It cost $55k back in the late 80s. Sold last year for a hair under $900k (we haven’t owned it in 20 years).

We sold that one to buy a home for not quite 10x the cost of the original house. That $1400/month mortgage payment seemed like a lot at the time. Shifted to a 15 year mortgage at one point and suddenly we were paying $2k/mo and then eventually we just paid it off.

I’m seeing homes around us sell for well over a million. The bargain recently was our neighbors house which sold for just barely over a mil, bought by a young couple. I assume they both have high paying jobs.

No idea how people buy homes at these prices. Yet the homes are selling.