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8/10/2025, 4:47:17 PM
>>512691479
it's mortgage rates from the 2010s.
it works like this - a buyer, Karen, can afford a $3k monthly payment:
at 6.5%, 30y mortgage allows her to borrow $475k (the maximum she can bid for a house)
at 4.5% the same $3k monthly payment now allows her to borrow $590k
that's 190k difference
back to the situation, the current owners "locked" at 2-3%, for them carrying empty units is cheap and makes waiting rational, until rates start dropping below, like, i don't know 5-5.5%, pushing the prices up again.
it's mortgage rates from the 2010s.
it works like this - a buyer, Karen, can afford a $3k monthly payment:
at 6.5%, 30y mortgage allows her to borrow $475k (the maximum she can bid for a house)
at 4.5% the same $3k monthly payment now allows her to borrow $590k
that's 190k difference
back to the situation, the current owners "locked" at 2-3%, for them carrying empty units is cheap and makes waiting rational, until rates start dropping below, like, i don't know 5-5.5%, pushing the prices up again.
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