Re:How Zillow's homebuying scheme lost $881M
by somewhereoutth on Friday March 18, 2022 @05:17PM
(#30727643)
The problem is that interest rates are too low. 5% interest rates would fix house prices (and other capital mis-allocation).
The reason why lots of boomers are sitting on large amounts of housing equity is that they bought before the transition to low rates. The reverse will also hold - anyone buying now before the transition to higher rates will get clobbered (in terms of loan to equity - probably they'll be ok repayment wise so long as they have a fixed mortgage)
The reason why lots of boomers are sitting on large amounts of housing equity is that they bought before the transition to low rates. The reverse will also hold - anyone buying now before the transition to higher rates will get clobbered (in terms of loan to equity - probably they'll be ok repayment wise so long as they have a fixed mortgage)