this post was submitted on 06 Sep 2023
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Welp. Interest rates are staying steady (at least) until the next announcement in October.

I don't feel like inflation has decreased. Housing is still exorbitant. But there haven't been mass layoffs, so we've got that going for us.

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[–] [email protected] 3 points 1 year ago* (last edited 1 year ago) (1 children)

The levels that rent has reached is the real killer.

In fairness, that is happening because people are afraid to buy houses right now. With rates going up it is not clear what is going to happen to housing. Many believe a crash is imminent, and as such don't want to be the bag holders, hence why we have way more people trying to rent right now than is usual.

If rates stabilize, or even fall, and the housing market shows no signs of crashing, there will be a lot more interest in owning homes again and rents will come back to reality.

That said, if the housing market shows to be stable and rents crash as people return to buying, that could trigger a housing crash. πŸ˜‚

[–] sbv 3 points 1 year ago (1 children)

In fairness, that is happening because people are afraid to buy houses right now.

A lot of people have been priced out of home ownership. Even if they could qualify for a loan, there isn't housing available at reasonable prices in a number of major metros.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

there isn’t housing available at reasonable prices in a number of major metros.

That doesn't matter. If you truly believed in the housing market, you'd buy a house in another market that does fit your budgetary constraints. You don't have to live there. If living there is not in the cards you would rent it out and use the income from that rent to pay your own rent.

The reality is that housing is scary right now. A lot of people have backed away, if only temporarily, because it is not clear what's going to happen. If the market crashes, they don't want to be bag holders.

[–] [email protected] 1 points 1 year ago (2 children)

If I were to buy a house somewhere and rent it out, the rent would cover the mortgage not my own rent to live somewhere else.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

Methinks you've not thought this through.

(Rental income - rental cost) - mortgage cost = (Rental income - mortgage cost) - rental cost