Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by dboreham on Tuesday March 21, 2023 @09:54AM
(#35246116)
You'd need to somehow get people in the US to understand that a 30-year fixed rate mortgage (where the interest rate is anywhere close to current fed rate) is not a real thing. It only exists because USG distorts the market such that it can exist.
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by nradov on Tuesday March 21, 2023 @10:21AM
(#35246539)
30-year fixed rate mortgages would still exist without federal government support, just like 30-year fixed rate corporate bonds. But interest rates would be higher, and there might be stricter limits on LTV ratio or PMI.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by pjc50 on Tuesday March 21, 2023 @11:12AM
(#35247378)
I don't think you can get a 30-year fixed mortgage in the UK. Or many other European countries.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by bequanna on Tuesday March 21, 2023 @10:13AM
(#35246380)
As the Fed has stopped purchasing MBS and mortgage rates jumped to 7-8%, people are in denial and prices have been stubbornly high.
Everyone I speak with seems to think this is "temporary", however, the current rates are much closer to reality and may be here for longer.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by mschuster91 on Tuesday March 21, 2023 @10:29AM
(#35246692)
> Everyone I speak with seems to think this is "temporary", however, the current rates are much closer to reality and may be here for longer.
IMO, it depends on how the war in Ukraine proceeds and if there will be signals of relaxing from China... in the end, interest rates represent systemic as well as individual risk and uncertainty, and the Russian invasion as well as the threat of a Chinese invasion into Taiwan (and a subsequent China-US or worldwide war) are the largest geopolitical risk factor by far.