If someone could afford the monthly payment of a $450,000 home at a 3% interest rate, the equivalent payment at a 6% interest rate is for a $316,000 home.
Ali Wolf
2,833 posts
Ali Wolf
@AliWolfEcon
Chief economist at Zonda | All things housing, labor markets, and consumers | Involved in monthly meetings with the White House to discuss real estate trends
- Builder in Austin said dominos are starting to fall. One builder dropped prices over $75K this week on homes with a base price below $700K
- Our data is now capturing a 70% cancellation rate in Phoenix...
- Called a loan officer this morning to ask about their current rates. He said they are quoting 4.75% for well qualified borrowers with 20% down.
- This stat is borderline unbelievable, but it's from the New York Fed, so I'll trust it. The share of mortgages going to borrowers in 2005 with a credit score of 760+ was 25%. The same number is 71% (!!!) for the second quarter of this year. #housing
- I know Brian Moynihan of BofA says this a lot but still worth repeating from a CNBC interview: BofA account holders who had an average balance of $1-2K before the pandemic, had an average of $4K in April. Those with $2-5K before the pandemic carry an average of $13K today.
- There’s a big builder offering a 4.2% FIXED rate mortgage today 🤯
- My biggest takeaway from our multifamily conference so far: the rent vs own gap has never been wider in favor of rent
- I look at housing data constantly and yet this chart gets me every time
- Just talked to builder in California. They opened a new community over the weekend. 1,500 people toured the models. They only had <10 homes for sale.
- 7% interest rates are crushing housing demand. This comment from our builder survey this week stood out: abysmal activity across all buyer types
- Longer cycle times + a rush to meet demand over the past year + more spec building = massive growth in new home units under construction
- I met with the White House today to talk about the current state of the housing market. We talked through drivers of home price appreciation, discussed constraints on building new homes quickly, and brainstormed potential policy fixes. #housing #affordablehousing
