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There’s blood on the streets. 2023 shaping up to be another one for the history books
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Well that should bring housing costs down by 1%.
I’m surprised they haven’t just bought houses and opened mortgages in unsuspecting customers names…
I mean, makes sense… I’m not going to leave my house at an interest rate of 2.5 % for an equivalent house at an interest of 6%… (if I had a house at an interest rate of 2.5%)
Majority of this 90% was refi volume when rates were much lower last year.
I worked as a mortgage processor for 3 years (worked in ops prior) and was laid off a few months ago. It makes sense, the prices went from obscenely cheap during the pandemic to the opposite extreme after it. I’m not mad, it’s just that I wish I never had gotten into such a brutal and unforgiving industry. Future people, ignore this industry for work.
That’s what happens when the cost of your mortgage triples.
Two years ago home mortgage rates for most buyers were in continuously dropping and bottoming out at around 2.5% for a 30-year fixed mortgage. Now mortgages are around 6%. So on $1M, that $60k a year in interest instead of $25k.
Is it time for our yearly once in a life time event?
Everyone and their fucking mom was refinancing. There was probably more refis then mortgages the last couple years
As a mid thirties dude who’s been fucked since 2009- bring it on bitches
Wells Fargo is a terrible company – they opened fake accounts for their customers!
Who the fuck is surprised by this…. everyone’s had a year of being able to finance at 2ish % for their loans… there will be no refinancing done for the next 30 years, which is most of the volume. I only wish I could pick up 30 year fixed rates in my country
Blood is priced in
Wells Fargo is still dealing with the repercussions of their lawsuit. They have a cap on assets for loans and credit lines. They’ve been declining and closing down loan departments since their original agreements to stay within their regulations.
Nah you’ll know theres blood in the streets because there will literally be blood in the streets.
probably not too far away though.
Maybe houses are a little overpriced? We still glamorizing that “flipping” bullshit as a society? Or did we wake up yet?
My buddy is in loan originations profession and just got laid off on the fifth round of layoffs. This will trickle into the economy very soon
What does this mean?
And they’re about to get fined eleventy million dollarydoos
Mortgage underwriter here. We just had another round of layoffs on Thursday that cut DEEP. Word on the street is we’re at pre-pandemic staffing levels again and the CEO is telling us that “this was the last round of layoffs”….
Nobody is believing it lol
Why the fuck would someone sell a house with a mortgage payment lower than the rent on a smaller apartment?
Wells Fargo also had the strictest lending methods leading up to this mess. WF will be just fine.
Surprised?! We went from 2.5% to 7% in a matter of few months. The fed is fighting inflation by trying to undo over a decade of loose monetary policy in a few quarters. The fed is going to wreck the entire economy.
Why is there blood on the streets though. It’s not like people are defaulting. It’s normal people don’t want to buy houses during period of high rates and high inflation.
It’s a real knife fight out there!
If we are dead-set-hellbent on ONLY addressing supply-demand imbalance through rates (of all things) then we should probably start implementing variable rates depending on what the money is going to be used for.
You know, the same way we muck with taxes to try to influence behavior.
1st home 3%, vacation home 6%, corporate-owned home 12%, solar panels 0%, buying a social media company and destroying it 0%.
I’m moving out
Well did you think the average home buyer was going to buy and overpriced market at 6%-7%+ ?
People say, well back in the days people were buying homes at 12%+ . Yeah but the price of the average homes were less than $250k
Just wait until the home builders just stop building homes though and the inventory stays tight and everyone gets fucked. Took until just this year to finally get up to about the average home starts after being below average from 2007-2019. The US Gov’t needs to take a trillion bucks and start building some fucking homes lol. We STILL had more housing starts in 2000 compared to 2020 and there were way less people 20 years ago.