Typical US Mortgage Payment Is Up 20% From Last Year But Home Prices Keep Rising Due To Plunging Supply

Source: https://www.zerohedge.com/markets/typical-us-mortgage-payment-20-last-year-home-prices-keep-rising-due-plunging-supply
Published: Aug 7, 2023
Author: Tyler Durden
Post Date: 2023-08-07 20:31:30 by Horse
Views: 310

The total number of homes for sale is down 19%, the biggest drop in a year and a half, and new listings are down 21%.

Poster Comment:

This has to end with a bad recession if not a Depression.

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#1: Ada    To: Horse (#0)

If you have a 3% mortgage, you will not want to sell if you have to buy your next house at 7%.

Ada posted on 2023-08-07 22:17:03   Reply   Private Reply

#2: BTP Holdings    To: Ada, All (#1)

If you have a 3% mortgage, you will not want to sell if you have to buy your next house at 7%.

The main problem is, and always has been, the Fractional Reserve System of banking. The bank only needs 10% of the amount of the loan on deposit. The other 90% is created out of thin air.

As the loan is paid off, the funds are extinguished. The bank makes its money on the front end of the loan with the higher interest rate payments. ;)

BTP Holdings posted on 2023-08-08 06:42:55   Reply   Private Reply