People With 3% Interest Rates ARE LOSING THEIR HOMES!

Everyone said that because people have 3% mortgage rates they will hold onto those houses forever because they'll never get a deal like that again in our lifetime. Unfortunately, a lot of people who have those 3% mortgages are now struggling to afford that home and going into foreclosure. You also have a lot of investors that have, ruined entire neighborhoods and are now starting to offload homes substantially bringing down the value of the local real estate market.

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Articles Mentioned in the Video

#realestate #housingmarket #homeprices #housingmarketcrash

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[NicholasBall]

In the early 1990s, when I bought my first home in Miami, first mortgages often came with rates of 8 to 9% and 9% to 10%, which was quite common. It's important to consider that we may never return to 3% rates. If sellers are compelled to sell, home prices may need to decrease, leading to lower valuations. I believe many others share this line of thinking.

[tmer]

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

[scottarmstrong]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[Peterl]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[tonysilke]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[randomchord]

In 2009 I asked my lender for a loan modification.
I was told that they would be able to do that but that I needed to default on the loan by not paying for three months.
I did as they said.
They told me to pound sand and started foreclosure procedures.
I spent 10 years fighting them in court and won time after time but each time they filed appeal after appeal and destroyed me through legal fees.
On my last time in court it was me, my lawyer and 5 lawyers from the bank.

Never trust the lender.

[michaelhalbert-qf]

I'm not a genius, and I'm not trying to brag...When 2020 hit I knew there were going to be severe long lasting effects. I spent 3 years paying off my house and my business. I am completely debt free. I know people that are struggling now. They cannot afford their home, cannot sell their home, and can not afford to buy a new one if it sold. But hey, I watch MSNBC, so I know that the economy is booming right now!

[enthused]

The simplest way to explain what's coming is to imagine if in 2007, everyone who bought too much house actually paid an additional 45% on top of 2006 prices, and then their homeowners insurance went up 300% in 2 years, their groceries and utilities bills went up 45% and all of their other bills went up 40% as well. And then they lost their job like they did in 08-09. It's really that much worse this time. People factually have LESS money saved in the bank today than they did in 2006-2007 as shown in the FRED economic data on personal savings rates. It's going to be ALL TIME bad here shortly, save your money to feed and house your family - nothing else.

[RobertBrown]

My interest rate is 2.5% yet the dam insurance is ridiculous

[Alachua]

It is such a privilege to see such a level headed young man like you Michael! Thank you!

[cypherlock]

3% interest and still losing homes? It’s the economy, bro. Cost of food, services, etc. Dayum.

[teenageapocalypseusa]

My property taxes and insurance increased my payment from $800 to $1200. My utilities went from $160 to $320. Groceries from maybe $250 to $750. I uses to pay extra on my mortgage. Now I am clinging on like everyone else. If we go into hyperinflation im not sure anyone will be able to pay their property taxes.

[AshleysBallistics]

And yet with all this data normal people will still be gaslit to thinking everything is fine... 😑

[gaal]

In Canada, they said the inflation dropped, so they started to lower interest rates, which made the Canadian dollar drop to 0.72 cents against the US dollar, making everything more expensive to buy. Nothing is going well

[jaynawilliams]

What I was told by people on YouTube years ago...get out of debt. And that saved me from being on the streets.

[artofficial]

I’m a disabled veteran homeowner …($40k annually)
I’m basically on house arrest.
Pay all bills and penniless by the 9th.
Rinse & repeat.
No tax stimulus for single people.

[leondonald]

The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[hot]

Here in Las Vegas. Just got an email from Public Storage today. Doubled my storage fees from $150 to over $320.They doubled my rent a month after I moved in. Bunch of

[randallback]

My grandma always told me
"You can live in your car, but you cant drive your house"

[nicolasbenson]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat