Today they're walking amongst the bodies and shooting anything that's still moving.
The past two weeks have been absolutely brutal. I have blood flowing from every financial orifice. My strategy of buying CDs for the past year has been great, but I've got enough tech that I'm still losing my shirt. [Reply]
Mag 7 selling off on ERs, unfavorable job report, Amazon less than stellar earnings, dollar weakening even further.....recession looming???
We could see an actual correction, which is needed. We are only down 5.8% from ATH. I won't suggest bear market (20% down) but there's a lot of indicators flashing louder than they have in the past few years. [Reply]
Originally Posted by lewdog:
Mag 7 selling off on ERs, unfavorable job report, Amazon less than stellar earnings, dollar weakening even further.....recession looming???
We could see an actual correction, which is needed. We are only down 5.8% from ATH. I won't suggest bear market (20% down) but there's a lot of indicators flashing louder than they have in the past few years.
The thing I keep telling myself is that we were having a fantastic year, and even with this selloff I'm still up on the year in my investments. It's horrific right now, but it's really just taking back gains rather than inflicting losses. [Reply]
Originally Posted by Rain Man:
The thing I keep telling myself is that we were having a fantastic year, and even with this selloff I'm still up on the year in my investments. It's horrific right now, but it's really just taking back gains rather than inflicting losses.
Definitely, could just be a much needed correction. This year we extended way too much and it couldn't last forever. Hope that's all it is but we shall see. [Reply]
Hog's Gone Fishin 08-02-2024, 03:41 PM
This message has been deleted by Hog's Gone Fishin.
Reason: A rare agreement from Lewdog , his post is below. I'm still deleting
Originally Posted by Hog's Gone Fishin:
Get ready for Mortgage defaults to start hitting. People that bought 4 years ago with variable rate loans bought what they could afford at the time. Now they are struggling if they got an adjustment. I've got 5 mortgages left on rentals that all adjusted in the last 12 months from 5% to 8.75%. I can raise rents, but people with a home mortgage just have to get a 2nd job. Meanwhile the property taxes have increased as well as fuel and groceries. Banks are going to get wrecked shortly or another bailout. Never ends.
I agree. Most signs point to that repeating. It is cyclical and it's coming soon (1-2 years), IMO. [Reply]
This made me curious about how common adjustable rate mortgages are. I never considered one when I bought my house a million years ago because the risk bothered me. I wondered if others feel the same.
Surprisingly, it's more common among high-income households than low-income households according to that article. I would have assumed that lower-income households would be more willing to take the risk because they had no choice.
And if you look at fixed-rate mortgages as an approximation, rates are about 2.2 percent higher than they were five years ago according to this chart: https://fred.stlouisfed.org/series/MORTGAGE30US
It seems like there's a little window of people for the next two years who'll get screwed by higher rates, but then they'll go down for people who bought after that. You'll also get a massive wave of people who got high fixed-rate loans over the past three years, and they'll be refinancing.
I don't think it'll be a large percentage of people who got adjustable rates in that two-year window and are about to get sodomized. Maybe that's enough to cause problems for the economy with defaults or maybe not. I don't know that kind of stuff. But I do think there'll be a lot more people who'll benefit by refinancing fixed loans down.
Originally Posted by Hog's Gone Fishin:
Get ready for Mortgage defaults to start hitting. People that bought 4 years ago with variable rate loans bought what they could afford at the time. Now they are struggling if they got an adjustment. I've got 5 mortgages left on rentals that all adjusted in the last 12 months from 5% to 8.75%. I can raise rents, but people with a home mortgage just have to get a 2nd job. Meanwhile the property taxes have increased as well as fuel and groceries. Banks are going to get wrecked shortly or another bailout. Never ends.
And motherfucking insurance. That bullshit is through the fucking roof.
But are there really fools out there with adjustable rate primary mortgages? There was absolutely no chance in any primary mortgage I've ever had would stick that bitch on an ARM. I had to fight to lock my farmland mortgage. I don't want any of that heat.
Maybe young morons that have never seen interest. Maybe. [Reply]
Originally Posted by Rain Man:
This made me curious about how common adjustable rate mortgages are. I never considered one when I bought my house a million years ago because the risk bothered me. I wondered if others feel the same.
Surprisingly, it's more common among high-income households than low-income households according to that article. I would have assumed that lower-income households would be more willing to take the risk because they had no choice.
And if you look at fixed-rate mortgages as an approximation, rates are about 2.2 percent higher than they were five years ago according to this chart: https://fred.stlouisfed.org/series/MORTGAGE30US
It seems like there's a little window of people for the next two years who'll get screwed by higher rates, but then they'll go down for people who bought after that. You'll also get a massive wave of people who got high fixed-rate loans over the past three years, and they'll be refinancing.
I don't think it'll be a large percentage of people who got adjustable rates in that two-year window and are about to get sodomized. Maybe that's enough to cause problems for the economy with defaults or maybe not. I don't know that kind of stuff. But I do think there'll be a lot more people who'll benefit by refinancing fixed loans down.
It's an interesting thing to think about.
8% is a hell of a lot more than I anticipated.
I guess right now I wouldn't feel too bad about an ARM. Save fees for a refinance.
But my ass would have to buy a shoebox in a gutter if I were going to give up my mortgage today. [Reply]