Originally Posted by
crewdawg
The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.
Yep. Because so many buy payment and not price and sales market reflected that.
But big line must go up no matfer what.
So a house I easily bought as a LT in the Navy in 2010, for $170k, is now $330k with much higher interest rates, taxes and insurance.
Navy LT pay hasn't doubled in that time. But housing price has probably tripled.
I know my mortgage in 2010 was around $1150/mo
It's about $2800 today if I were to buy the exact same house. No upgrades. 10 years older.