How This Ends - Hackdot

Re:How This Ends by rhexs on Sunday May 22, 2022 @11:59AM (#31469554)

It depends on a recession and how bad it is. Even if you're locked into a low mortgage, if you lose your job, can't pay, and due to rising interest rates are now underwater 500K on a mortgage, nothing good happens.

Like it or not there's a lot of chaff to cut in software engineering. How many of these SaaS businesses can survive, and how many engineers bought nice homes with massive salaries that might go poof?

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Re:How This Ends by riku_iki on Sunday May 22, 2022 @12:02PM (#31469595)

> are now underwater 500K on a mortgage

it will be very small fraction of homeowners: those who bought in in last 2-3 years. All others will be significantly over water, and may take equity loans instead of selling houses to preserve low mortgage interest rates.

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Re:How This Ends by tsunamifury on Sunday May 22, 2022 @12:20PM (#31469789)

Eventually and all sellers and no buyers market will catch up with prices. Matter of how long it can be bridged. Every equity loan taken out against higher values will shorten that bridge.

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Re:How This Ends by riku_iki on Sunday May 22, 2022 @12:30PM (#31469940)

And then homeowner will have strong incentive to move to smaller rental unit and rent his primary residence, or maybe he will be able to find job in this few years secured by equity loan.

> Eventually

Eventually maybe. FED gave 20T free money to current home owners in addition to existing tax incentives, how long it will take to chew through them? Maybe generation?

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Re:How This Ends by BolexNOLA on Sunday May 22, 2022 @08:14PM (#31474112)

>due to rising interest rates

I think most people are doing fixed rate loans in this economy, right? Genuinely asking. I think I might be misunderstanding this aspect of your point here.

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