If home ownership is 90% that doesn’t sound like a big problem for the country. If only 10% are renting or looking I can’t imagine that would have much of an impact on prices with demand being so low. Business investment is a problem for sure
I have no clue but that’s only true for a growing population. Last time I checked they have a diminishing population with not that much immigration. So if every time someone dies they leave the house to their child - no money required. Again all assumptions
It’s net housing, plenty of young people going off to die won’t be needing a house, lots of empty houses from people leaving the country through brain drain. Lots of people dying well before their kids grow up requiring a house. Yes some young people will need homes but there’s more than enough supply to keep the price low enough that the interest rate doesn’t bite as hard as interest on a large principle plus this impacts less than 10% of the population then assume many of the 10% is happy to rent so I don’t know ~ 5% of the population might want to buy a house and some of this 5% would have the means to do so even with higher rates so it’s even less again
You don’t understand. If you own your home why do you need to move? And if you do need to downsize how will higher rates increase the burden if the principle is decreasing? Do you have a degree in macro economics? Because I dont
People have children and need to get a bigger place. Or their children grow up and move out, so they downsize.
Yes, higher rates will increase your payment even if the principal is lower.
A $300K 30 year mortgage (paying 20% down) at 3.25% costs $1044 per month. The same mortgage at 6.25% costs $1477 per month. 15% is $3034 per month. At 15% you can afford half as much house as at 6.25%, and a third as much as 3.25%
Also, you will get less equity for your house when you sell because other people can’t afford a larger loan (because their payments go up too). That’s the purpose of high interest rates; they prevent people from borrowing money.
If home ownership is 90% that doesn’t sound like a big problem for the country. If only 10% are renting or looking I can’t imagine that would have much of an impact on prices with demand being so low. Business investment is a problem for sure
People have children and need to get a bigger place. Or their children grow up and move out, so they downsize.
Higher interest rates keep people in places that don’t fit them because it’s more expensive to change.
I have no clue but that’s only true for a growing population. Last time I checked they have a diminishing population with not that much immigration. So if every time someone dies they leave the house to their child - no money required. Again all assumptions
Uh ok. Yeah that will work… in thirty years. Most people don’t have someone dying and leaving them a house every few years.
It’s net housing, plenty of young people going off to die won’t be needing a house, lots of empty houses from people leaving the country through brain drain. Lots of people dying well before their kids grow up requiring a house. Yes some young people will need homes but there’s more than enough supply to keep the price low enough that the interest rate doesn’t bite as hard as interest on a large principle plus this impacts less than 10% of the population then assume many of the 10% is happy to rent so I don’t know ~ 5% of the population might want to buy a house and some of this 5% would have the means to do so even with higher rates so it’s even less again
You don’t understand. With high interest rates, no one wants to move because their home mortgage will be higher even on a smaller place.
You don’t understand. If you own your home why do you need to move? And if you do need to downsize how will higher rates increase the burden if the principle is decreasing? Do you have a degree in macro economics? Because I dont
I just explained it to you:
Yes, higher rates will increase your payment even if the principal is lower.
A $300K 30 year mortgage (paying 20% down) at 3.25% costs $1044 per month. The same mortgage at 6.25% costs $1477 per month. 15% is $3034 per month. At 15% you can afford half as much house as at 6.25%, and a third as much as 3.25%
https://www.bankrate.com/mortgages/mortgage-calculator/
Also, you will get less equity for your house when you sell because other people can’t afford a larger loan (because their payments go up too). That’s the purpose of high interest rates; they prevent people from borrowing money.