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Is it time for interest rates to go up?

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Is it time for interest rates to go up?

Old 03-22-2021, 06:37 AM
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You'll get hyperinflation and like it!
Old 03-22-2021, 07:21 AM
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My mom just moved into a nice new suburban neighborhood.... like $350-500k homes. Not to stereotype or anything, but there are a lot of people who look like they have no business in that neighborhood. For example the HOA is having a hell of a time because some of these people don't realize they can't leave their non-running shitbox car out in the driveway/street for months at a time....
Old 03-22-2021, 07:35 AM
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Originally Posted by Saltydawg15 View Post
My attorney says about 60 percent of all closing he handles are cash so that blows the interest theory out the window. Additionally rates have increased about 50 basis points in the last month. You have a number of things pushing this real estate boom, people leaving closed states (CA, Illinois, NY, etc), people have a lot cash on hand with the market increasing and having few places to spend it, work from home so people can live wherever they want. It will stop but not sure when as there is little to no inventory.
Yep. The net migration patterns are something we track pretty closely. Charlotte has seen an absolute explosion of NY/CT/IL/CA migrants. Same with Raleigh, Atlanta, Nashville, Charleston, etc. but I live in CLT so track it closest.

You can see it in residential sales (the roof has been blown off historical prices on the very high end), license plates, private school enrollment, culture, and commercial RE.

One of our top private schools recently got 700 applicants for 100 spots for the incoming kindergarten class, reportedly over 250 were from CA and NY.

This isn't all driven by interest rates. I'm speaking about people with money that can choose to live where they want, so not really the average American.
Old 03-22-2021, 01:05 PM
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Originally Posted by Belrose View Post
Yep. The net migration patterns are something we track pretty closely. Charlotte has seen an absolute explosion of NY/CT/IL/CA migrants. Same with Raleigh, Atlanta, Nashville, Charleston, etc. but I live in CLT so track it closest.

You can see it in residential sales (the roof has been blown off historical prices on the very high end), license plates, private school enrollment, culture, and commercial RE.

One of our top private schools recently got 700 applicants for 100 spots for the incoming kindergarten class, reportedly over 250 were from CA and NY.

This isn't all driven by interest rates. I'm speaking about people with money that can choose to live where they want, so not really the average American.
The cancer has metastasized.
Old 03-22-2021, 01:18 PM
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Originally Posted by 1976K204x4 View Post
The cancer has metastasized.
Spot on.
Old 03-22-2021, 01:34 PM
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A part of the problem is a result of the pandemic. Part of all of the relief bills has been a moratorium on evictions/foreclosures. From what I saw on the utube (so it must be right) there are currently 1.6 million home in forbearance. In short, they would be foreclosed on in normal times. The current market has about 0.4 million homes. Normal is close to 1 million. If the moratorium is not extended, these home will be hitting the market starting late summer. When ever they do, that is when the fan will expel some fecal matter.
Old 03-22-2021, 01:42 PM
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Originally Posted by Stix1 View Post
Cheaper to buy then try and build, anyone check lumber prices lately?
Opposite here. Resales in same communities going for about 15%-20% more than new construction.
Old 03-22-2021, 02:50 PM
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Originally Posted by Stix1 View Post
Cheaper to buy then try and build, anyone check lumber prices lately?
Its funny you say that. Builders in my area have increased stud spacing from 16 inches to 20 inches to help reduce the amount of lumber used. They are cutting corners everywhere to conserve costs. Not a good time to buy a new build.
Old 03-22-2021, 02:59 PM
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Originally Posted by Charlie in TX View Post
From what I saw on the utube (so it must be right) there are currently 1.6 million home in forbearance. In short, they would be foreclosed on in normal times.
Not sure that I agree with the bolded part. To my knowledge, a lot of the homes in forbearance are because the owners simply saw an easy way to not have to make a mortgage payment for a few months. These people have no problem making the mortgage payment otherwise; they just saw an opportunity.
Old 03-22-2021, 03:01 PM
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Originally Posted by c_m_25 View Post
The real estate market is unbelievable in my location right now. Houses selling in mere hours. Little inventory to be had. A lot of that is probably related to the pandemic...not as many people selling.

This has all led to a massive increase in home prices. My home has probably increased in value by 30-35% in the past 6 months. Talking with a realtor buddy of mine, he says people are leveraging their 401k’s to buy and mentioned a lot of low down payment loans going out too. This seems like a major recipe for disaster, no? Seems like we need to cool this off a bit. What say you?
What does that have to do with 'interest rates'?

And what 'rates' are you referring to? Mortgage rates I presume?? I'd be happy to see rates move up. Right now overnight rates are so pathetic. ..an atm fee would eat a years worth of %
Old 03-22-2021, 03:19 PM
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Originally Posted by Re-Bait View Post
What does that have to do with 'interest rates'?

And what 'rates' are you referring to? Mortgage rates I presume?? I'd be happy to see rates move up. Right now overnight rates are so pathetic. ..an atm fee would eat a years worth of %
What do you mean by overnight fees?

Yes, debt has been too cheap for too long....I think. People are resorting to ridiculous strategies to buy homes to take advantage of it...of course that’s been happening for forever I guess.
Old 03-22-2021, 03:29 PM
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Overnight RATES not fees. ATM fees are what? I can define MM rates...next to zero. What do you think a 100 thou earns in a year at these levels. Around $100 or 0.1% or less. Overnight rates use to earn about $20 on a 100,000.

Old 03-23-2021, 06:23 PM
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Originally Posted by TorFed;[url=tel:14581647
14581647[/url]]Opposite here. Resales in same communities going for about 15%-20% more than new construction.
no one wants to wait, that’s why. They want it and they want it NOOOWWWW! Hasn’t anyone seen HGTV? Full home reno in 30 minutes.
Old 03-23-2021, 06:34 PM
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I'm not in a big neighborhood but the one builder currently has 18 homes going. That could be from just digging the footings to last touches before closing.

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