Mortgage rates just hit 5%. Buying a home has become a lot more expensive

Re:Mortgage rates just hit 5%. Buying a home has become a lo... by spamizbad on Friday April 08, 2022 @10:05AM (#30956891)

Yes, but unlike the 1980s we've been underbuilding housing since the 90s. There were also more first-time buyer incentives available in the 1980s.

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Re:Mortgage rates just hit 5%. Buying a home has become a lo... by JKCalhoun on Friday April 08, 2022 @10:25AM (#30957173)

At the same time, the higher interest rate will causes existing home-owners to "stay put" rather than jump to another home and pay 5% (unless they are down-sizing and able to make a cash offer).

So the supply problem is not addressed.

Might make new construction cheaper though?

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Re:Mortgage rates just hit 5%. Buying a home has become a lo... by HarryHirsch on Friday April 08, 2022 @10:12AM (#30956975)

Exactly that - it's not clear how interest raises in a time of shortage will do something about the shortage. If anything, they discourage investment.

And what's with buyer incentives? They are just a conduit from the taxpayer to Big Finance.

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