High Mortgage Rates Scare Off Potential Home Buyers

With mortgage rates at their highest in decades, the housing market has turned upside down. One year ago, the real estate boom induced by the pandemic had open houses with lines down the street. Now, even a lovely home with a modern kitchen and bathrooms in a great school district sits on the market with no takers. But Christine Tremain of Weichert Realtors says mortgage rates will eventually go down.

[@waveafterwave0723]

They’re not scared off by higher mortgage rates. They’re scared off by the ridiculously overpriced house. That house is NOT worth 1 million dollars. Let’s knock a couple hundred thousand off of that and watch it sell.

[@ashahersi7987]

00bb

[@romain198426]

Naaaaaah I think it is the mortgage rates

[@Kubwayo10]

Fact

[@moopsi-pupa]

Not couple but More like knock down 700k from that 1 mil. Even after Considering it is in a posh place

[@Ms.NoNo2]

@@anabhousen7159 uh, no. The rate, or percentage, gauges the interest. 200k @ 3% is gonna be a lower payment than 200k @ 6%.

[@goodliving7671]

You know it's really bad in the housing market when even Inside Edition is talking about it 😂

[@jimmytimmy3680]

They better send Lisa Guerrero to talk to the lonely houses.

[@jay851038]

Lol! So true!

[@TheeRighteousOnee]

But they're a news channel.

[@prestonanonuoso5508]

Scared off by the high prices.

[@brianoleson9224]

@@prestonanonuoso5508 just wait until the shoe drops on a bankruptcy or other cracks in the financial system this is no ordinary recession you could smell it off you face mask in 2020

[@akiralight6861]

How the hell is a shy over 1 million considered a great deal for a 4 bedroom house??

[@M3LODY2508]

Exactly lol smh

[@David-vt9hr]

It's New York

[@David-vt9hr]

You're gorgeous 🌹

[@fireflymiesumae]

Stupid

[@Ambi1021]

Location is everything.

[@bunnybangz]

Clearly not the right time for ANYONE ms realtor lady. We all broke.

[@2ndamendmentmf183]

But biden said We're not in a recession and inflation is not happening 😂

[@2ndamendmentmf183]

@@Saxxin1 but....but big daddy joe said everything was gonna be a o Kay

[@mstobel]

I love how she totally neglected if the market crashes and you end up owing more than its worth! Tired of these crooked ppl

[@david_lawrence_h2703]

And just to assume that rates will come down at some point is a lie. Maybe way down the road but not anytime soon.

[@brianoleson9224]

@@david_lawrence_h2703 the last depression happened after a pandemic 100 years ago if history repeats how would housing market do in a depression?

[@Keenbeancats]

I am a senior mortgage advisor. I cannot qualify anyone that is applying because with the rate and the price of housing, it’s not in budget for most average first time home buyers. I was also in the market myself for a home for our family and we were being outbid by 30-50k on a home not worth even what the asking price was. It’s SICK. I totally feel for everyone that really wants to buy a home and cannot. I can relate currently even though I am in the industry!!!!!

[@bracebrooks967]

Definitely understandable why alot of homes aren't being bought during a year of inflation, and a long-lasting epidemic which sadly struck many with high hospital bills so yeah many of us may have to be stuck in apartments instead of houses for a while. So much is already over-priced here in the U.S, most notably healthcare costs.

[@bracebrooks967]

@@Vicky-bo4dy How is that funny?

[@lolimrob]

@@bracebrooks967 cus america is funny

[@dbacks2023-]

The rate will change and you could refi but until that happens you’re putting down $1200+ more every month on top of the normal monthly payment

[@toddspangler6669]

Yeah, and just like rates staying at historically low for way too long, who's to say they won't stay around 7% for several years?

[@nofindausername]

....and refinancing ain't free lol

[@hectorortiz91]

And if values do drop then what guarantees you can refinance if you’re underwater on your loan. Typically you can only refinance up to 80% the value of the home.

[@danishshaheen5973]

You the best C!

[@Friends46488]

@@toddspangler6669 exactly!

[@rafaeltorres2886]

I have lived long enough and have owned a number of homes over the past 35yrs to know that interest go up fast and come down slowly especially during a serious recession and what this recession is turning out to become is very serious. I would wait to see when the market levels out , meaning when the home prices fall enough where those high interest rates won't bankrupt your pocket book.

[@ryanh4148]

Christine Tremain is the worst kind of professional you could work with. I actually work in mortgage myself. NEVER work with someone who tells you that you can ALWAYS refinance. They aren't psychics. Go with the professional who seeks out something you can reliably afford for the long term with the *possibility* of refinancing later

[@angelinimartini]

Lol well she’s a realtor… different side and a different view. I feel like a realtors job is to sell you the dream, your loan officer is the one to bring you to reality. Realistically speaking though, the artificially lowered rates were never going to stay and it seems like people have a sort of unrealistic expectation that is where they want them to go back to. There is a balance to all this between the price of homes and the rate. Houses were way over priced since 2020, now they will start to fall and hopefully the rate will be somewhere in the middle at some point.

[@mph5896]

You can refinance IF your income and credit is about the same. Otherwise screwed.

[@joelwillis2043]

@@angelinimartini realtors love to give economic forecasts while most I wouldn't trust to do 5th grade math

[@rayblox4859]

When is a good time in your opinion?

[@mph5896]

@@joelwillis2043 it’s not hard to become a licensed realtor. I bought an online course, did it but never applied for a license. $500 and a couple weeks of my time with the course. Just about anybody can do it

[@ademvelic3580]

I always admired realestate agents advice. They would never lie to you.

[@zenfuri89]

Sarcasm? Lol

[@ademvelic3580]

@@zenfuri89 you know it.

[@littlebolivian]

The rate also determines if you can even qualify for the loan. She forgot to mention that.

[@ES92-]

Mmm Nah, she didn't forget it.

[@jo2832]

Man I'm pretty sure a Cardboard box cost like 1000 for rent and 2500 to buy

[@decepticonunknown236]

Yes I can’t afford rent for a box right now.

[@reneel2441]

That is hilarious 😂 😃 😄

[@thanosianthemadtitanic]

More like other way around. If people can't buy houses then there renting which causes that to go up

[@containedhurricane]

If I had one million, I could've retired comfortably in Thailand or the Philippines. No need to worry about stray bullets and violent crimes in New York

[@Canadiangrl77]

I'm so upset 😡 I could scream. I'm over here at Ikea looking for the most comfortable box to call my new home. This world is messed up.

[@bestescapes]

I agree it is sad

[@jaythakydd5417]

As long as you have a roof over your head and a warm bed to sleep in shouldnt need to buy any house worth over a million.

[@joejacko1587]

a coffin could fit that description

[@gl3936]

@@joejacko1587 well thank god a coffin isn’t worth a million either 😂😅

[@straightdrive6192]

PLEASE READ - YOU CANNOT REFINANCE IF THE HOME VALUE GOES DOWN. First time home owners beware.

[@straightdrive6192]

@@derekk2300 they will say because they have to sell . I know many who don’t know this and end up under water . Scary how people mislead others .

[@DiaperSNiFFER]

They really want us to Think a 4 bedroom 🏡 with tiny rooms is worth over a $1,000,000. 🤦‍♂️

[@ediekoller1144]

The house across the street from my next door neighbor went on sale in August and sold in over a month for over the asking price. The house was bought for almost one million dollars for a 3 bedroom /2 bath and had been remodeled. The person that bought it is a single older man. .

[@PlayedTV]

You cannot refinance when the house drops 30% and you don't have enough LTV on the new refi. PLEASE STOP LYING!

[@corbin8930]

House prices need to come down not just interest rates

[@tylere.8436]

Housing prices rise if interest rates get low, you want higher interest rates for lower housing prices.

[@MrEvilTag]

One or the other. You cant have both

[@MyTravelVanz58]

Amazing would be nice to have a house lie that. Too expensive...

[@TropicalThunder21]

We had a custom home built right before the pandemic, about 4 months prior is when we moved in, we bought at a PERFECT time, it’s insane now, we could never afford it

[@rubyoro0]

How much was for build without the lot? Sq ft?

[@TropicalThunder21]

@@rubyoro0 lot was $29K

[@armandoebk6786]

No way I would pay more then 300k for that house.

[@journeymansmitty8283]

In my point blank opinion is the worst time ever to buy a house because right now we're in the inflation you never know when you're going to go into a recession🤔

[@hipking23]

That house is overpriced

[@bermuda975]

only 1M? thats my lunch.. if you guys see anything for 100M please let me know ... its hard to find house for 100M

[@Dove12316]

The house isn’t selling because of rates, it’s not selling because of it’s price. Supply and demand 101.

[@TheGamerShowsYou]

Exactly, who wants to buy a 1million dollar property and owe an additional 600-800k just for the loan, most Americans will be paying that off their ENTIRE life. Average earning for an American in their life is just a bit over 1.5mill

[@colbydoee]

Damn im working 100 hours a week and I will never own anything. 💔😔

[@CC-bt8lf]

Look into Dave Ramsey! It's possible 🤗

[@thanosianthemadtitanic]

You can always afford to live on the streets

[@MrEvilTag]

That's your fault then if 100 hous still dont get you anywhere. Stop having a broke mentality

[@gl3936]

@@MrEvilTag oh yeah, it’s so easy it’s like clicking some damn heels like the wizard of oz 🙄🙄🙄

[@Vizzi12]

I’m pretty sure this headline has been copied and pasted for the last 5 months 😂

[@minedude1126]

If it's been on the market for over 2 months at $1 million then it's probably over due for a price reduction. Simple economics

[@dianecelento4974]

Lol

[@romain198426]

Yes you can refinance but the issue is when

[@chrishince8947]

It's not just mortgage rates, it's the cost of housing!

[@beezkneez7065]

Another dumb realtor saying it's the best time to buy 🤦🏽‍♂️

[@BobTheBob647]

It’s not that people don’t want homes but these high rates makes it hard to afford. Instead people have to rent the homes. No real winners. 😩

[@alecjo2307]

Good luck selling a million dollar home with a 7% interest rate.

[@reighanrosette]

The inflation rates, mortage prices rising, gas prices... this is getting out of hand

[@trailerhaul8200]

The housing market will be going up. Builder ain’t building tons also, so the supply remains low. Either we have to buy an higher price tag on the house (when interest is low, more buyers) or pay tons more for mortgage rate (when supply is low). It is a control mechanism

[@mattpike7268]

I own over 700 feet of lakefront, and 75 acres of land with a 2400sf home, and it costed less than half that subpar house with no property. Stop living in cities like rats!!!

[@maildeliverysubsystemmaile9178]

Where?! I want to move THERE! 😀

[@Pinkfrosting962]

No, you cannot always refinance. There is no guarantee rates go down and make sure you understand negative equity.

[@C_In_Outlaw3817]

When he said suburb of NYC I thought he was gonna say westchester county 😂 but the same thing is happening there too

[@mikefranzen]

The problem with first time me home buyers such as myself I'm forced to go through fha so refinancing won't work for most buyers for a bit. I'm waiting for houses to drop in price then possibly not go through fha and then refinance but we'll see what happens

[@Pola509]

No one wants to pay 7 or 8 %

[@_PAIGE94]

Happening everywhere 😢

[@shayisrael6137]

Thank God for biden and building back better!!

[@youmadhuh6375]

Should've buy during covid if you were able to... the mortgage rate was awesome.. we closed at 3.25 rate

[@prestonanonuoso5508]

You overpaid by a lot.

[@bmo9881]

You're paying a lower rate on a house that was ridiculously overpriced.

[@thanosianthemadtitanic]

@@bmo9881 BMO NOOOO

[@gl3936]

That wasn’t a good deal either 😂

[@mmay6621]

Vote *RED* 🇺🇸

[@Xavierpropertyshow]

“You can always refinance” your not taking to rich people, the interest rates going up mean I have to buy a cheaper house with my limited income household, broke people aren’t scared of high interest rates that’s why we’re broke, because we always have high interest rates

[@blakematusheski]

I'm telling you Bergen county is the richest county in New Jersey. And best schools and school districts in Bergen County, that rank in the best education for New Jersey and of America.

[@maou8599]

Never sweet talk about the rate of housing, people never get fooled by it.

[@mc1618]

Why would anybody in their right mind pay that type of interest rate on $1 million house please make it make sense!

[@melvynpaclibar9214]

Merica should open more its real estate market to foreign nationals

[@GolDGreg]

Almost as if that $400k house isn’t worth $1m

[@mudpiemutt8305]

My husband and I were going to buy a house a few years back. It was a 3 bedroom 1 bath home (nothing really fancy) for $106,000 and our interest rate was only 3%. We were getting ready to sign the final papers and the mortgage guy realized our credit score was 619 to purchase the house and we needed a 620 credit score to qualify. He said to try again in a few years to buy. So, we did. We got our credit score up there,but unfortunately housing prices in our area have skyrocketed. The same house that we wanted to buy was on the market, but this time for $400,000! The mortgage guy told us this time if we wanted to buy my husband and I would have to have 2-3 full time jobs each to afford in our area. The cheapest option in our area is a 30+ year old manufactured home in a park for $175,000. And space rent on top of that is $700 a month.

[@rubyoro0]

That’s what you get for not being on top of your finances in order to have good credit.

[@victors16811]

That’s just sensationalism… that’s not an average house, find houses ~450-500k

[@lexlovedaville]

Spoken like a true realtor

[@06Pine]

Sitting at 3% flat

[@XInfantryman]

That's right. Rates go up and down. Buy, buy, buy

[@Wogsmawp]

For a mill you might as well build your own home customized to your needs

[@SenorSwagBuns]

What if they just lowered the price as fast as they raised it? Would buyers come back?

[@Royalewithcheesee]

Yes. They’re thinking way too hard.

[@polylight]

Not unless it comes with 4% pre-covid interest rates as well.

[@tylere.8436]

@@polylight Never happening for a long time, that time came and went.

[@alejandrohernandez7340]

“House prices will drop” mortgages “will drop” that’s what they always say

[@austinverlinden2236]

Not only is the interest rates high, but you have homes increased in price.

[@orangecat5909]

"Ilove that house" so cute perfect for me. All I need is that Powerball ticket win fall.

[@APxKP]

never buy a house thinking you can refinance. never trust what a realtor says on any kind of media. they will say anything that keeps her paid.

[@pahanin2480]

Realtor: just buy now and refinance later so I get my 3% at the top of the market Buyer:

[@mph5896]

1m home at 7.5% 30 year. That is $75,000 a year or $6250 a month JUST in interest. Same loan at 3% is $30k a year or $2500 a month in interest. A $3750 a month increase. 😉 Add in higher property taxes and insurance and people aren't biting.

[@travise5284]

People know we’re in a recession

[@zorze2707]

they're pushing people to live in a van🤔

[@netterz3411]

It's starting to seem like a good idea

[@gl3936]

Hell, at this point I’m thinking about buying a shed and just turning that into a house. Either that or build one of those small homes they show on tv 😂

[@slesperado]

They should just reduce the price of the house. Also, wouldn't refinancing ruin your credit?

[@Ember_Prime]

I don’t trust a real estate agent who says “just buy it, you can always refinance it!” How do I know that if I refinance it that it won’t cost me more? The risk of that is too much for me to trust her statement,

[@Pinkfrosting962]

That’s good intuition because she’s lying through her teeth.

[@MrEvilTag]

Common sense would help you there

[@magic_fruit_bat5003]

Everyone is leaving the nj/nyc area. It’s not worth it.

[@KylerTony45]

Funny how that lady makes a commission off of people buying houses says it’s always a good time to buy. She says don’t worry about the rates???!!! Translation: I need that commission.

[@codyaltman29]

This is great for cash buyers!

[@joelwillis2043]

Try lowering the price

[@clever41504]

That’s good though, we need to regulate these overpriced homes. Sellers got greedy

[@isaac634]

Greed…..is destroying this country

[@JosephRomano]

Is it me or does the house remind you of Andy’s house in Toy Story 1 ??? 0:02

[@Royalewithcheesee]

No no no no no. You’re losing buyers because you’re pricing the home too high.

[@blindjedi4139]

lol rates will come down some day. If you wait prices will also come down. Higher supply of houses and lack of demand for houses will cause the drop, wait patiently.

[@chuckstewart6886]

Upstate central NY 3 bed 1 bath rent goes for around 1k

[@jillclarke7264]

Says the Realtor not paying my mortgage. In the 80's it took over a decade for interest rates to drop below 10%. Time for a realty check lady.

[@epicnesselmer]

Can't wait for these houses to cost under 700k then I'm buying

[@jlcain100]

Yeah all the neighbors will be pissy they have a 900k mortage on a home that is worth 650k even if its a good rate.

[@neilsmith9066]

@@jlcain100 but they got that 3% rate to pay an extra 250k on the same house 🤣

[@tylere.8436]

In my area, 700k could get me a mansion!

[@mikejautosandstuff3349]

It’s not right for most for a home in NY

[@ES92-]

You can't always worry bout the rate 💀

[@bbygrlpt2]

Too expensive might as well rent bc youre never gonna own that house anyway

[@tungdiep2000]

You can’t worry about the rates? That determines the monthly payment lady. Spoken like a true real estate agent😂

[@drgopta2180]

That lady gave terrible financial advice.

[@michaelmorales515]

Refinance? Aren't there fees we have to pay usually equaling to 3-6% of the total loan? That's just more money for the greedy banks to take...

[@blastoiseking1437]

You can "always" Refinance 💀

[@bpo4736]

VIDEO: Popular suburb of NYC… Also the video: Ridgefield, NJ

[@davysmith8569]

was 2.5 now its set to hit 10% , dont buy anything unless you got straight cash

[@rudysalas9138]

You can refinance interest rate but you can’t negotiate the final price of the mortgage.

[@brickman291]

Bought our first home 1989 at 12.5 % 😮😮😮😮

[@nesq4104]

1 million for no land. Next to a neighbor who will always complain and likely on contaminated NJ soil. No thanks

[@jaysean560]

Refinancing with other financial institution will help why?? Because you can check with lower interest rate like canvassing and choosing the lowest one that is offered to you this also will bring down monthly payments

[@Aaron_R]

Go back to the 1980's/1970's where rates stayed above 10% for 10+ years.

[@kristoferwesloh7793]

Because nobody stupid enough to pay $1 million for a house that is worth $500,000 with a interest-rate it 12%

[@2ndamendmentmf183]

Can't wait for the crash 😂

[@hugoosarion4775]

It hasn't sold because they don't want to lower the price period .