The size of the average fixed interest mortgage last week was 280,900 dollars. The size of a mortgage ...
The average fixed-rate mortgage last week was $ 280,900. The size of an average adjustable mortgage was $ 688,400 - two and a half times greater. This data point, courtesy of the Mortgage Bankers Association, is a reminder - perhaps uncomfortable - that the mortgage industry is still offering products that would make it artificially affordable to reach people at the door, with the intention of refinancing later. - It is “uncomfortable” because in many ways, it is reminiscent of the housing bubble a decade ago. Progressives blame Wall Street, while conservatives blame the low-income and government policies that helped put them into homes they couldn't afford. Analysts of all tiers are blaming the mortgage industry for connecting people to more exotic loans, which will allow them to afford home ownership, including variable rate mortgages.
The Average Adjustable-Rate Mortgage Is Nearly $ 700,000. Here's What That Tells Us.
The size of the average adjustable-rate mortgage was $ 688,400, two and a half times larger than last week's national fixed-rate mortgage average.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
The increase in interest rates last year and this year is a tool of banks and the government not to let the market inflate and enter a bubble. Mortgages we gave in 2005 had a low fixed interest rate for two years and switched to variable in 2007. All these mortgages were bad mortgages. All these mortgages were united in polym - cdo. And because they were from different regions, they were highly rated by securities rating companies. and sold to investors. This industry started in the 70's. But in the 2005's it reached the pigsties and absolute irresponsibility. When a period of fixed low interest rates ended, the monthly repayment amount increased and people could not repay. In 2007 it reached its peak. When investors and analysts understood what a cdo is, their length decreased and banks tried to get rid of them and their price dropped. Now there were people who played on a drop - short. The first to discover this possibility was Michael Burry. In short, this building fell, many people lost, and there are those who earned half a billion dollars. The 2018 craze in the real estate market went down a bit with the rise in interest rates, I guess investors who don't have cash and just take out a loan will get out of the game. Moshe is important that the market stays where it is now and stops rising very quickly. May the market be healthy and less volatile
Indeed, with the rise in mortgage interest rates in recent years, lenders have launched new and more leveraged products to cope