I think in 2020 it was over half of mortgages, probably more now. Haven't looked it up. Even worse, The Fed now owns MBS in the high 2 trillions, up from zero pre- Great Depression 2, and taxpayers ultimately backstop that.
In recent years the RE market has been goosed by "cash offers". My spider sense tells me those offers will persist but at a much lower bid. Why would a cash buyer set the high bid when the borrower's purchase limit has just been cut by a third? The cash buyers will become vultures.
What amazes me most this financial collapse is how stunned people are that it is happening. What did they think would happen? In 2008 the issue was too much credit without the income to support it. In 2022 we have too much credit, not enough income and we have significant supply disruption due to Covid and Russia policies. The situation in 2022 is far worse than it was in 2008 and the experts are all surprised.
Omg, $1.78 million for a house in Berryessa? That used to be a very middle class part of San Jose.
I think RE is turning, and it's about time. Price-fixing rates for over a decade has massively distorted asset prices.
Mortgage rates going from under 3% to near 6% are going to have an effect
It's the age-old German saying: When it comes to selling real estate, better a year too early than a few days too late...
A real estate agent actually said this to me last weekend.
Berryessa sounds exactly like Toronto and its suburban areas
Real estate market hit a wall in So Cal recently. Buyers disappeared.
How much mortgage debt guaranteed by Fannie Mae and Freddie Mac?
I think in 2020 it was over half of mortgages, probably more now. Haven't looked it up. Even worse, The Fed now owns MBS in the high 2 trillions, up from zero pre- Great Depression 2, and taxpayers ultimately backstop that.
https://fred.stlouisfed.org/series/WSHOMCB
"taxpayers ultimately backstop that"
Yep, but on the bright side. There is only one S&L that has failed instead of thousands...
Fucking wackos. Let's cheers to the Great American Empire.
In recent years the RE market has been goosed by "cash offers". My spider sense tells me those offers will persist but at a much lower bid. Why would a cash buyer set the high bid when the borrower's purchase limit has just been cut by a third? The cash buyers will become vultures.
What amazes me most this financial collapse is how stunned people are that it is happening. What did they think would happen? In 2008 the issue was too much credit without the income to support it. In 2022 we have too much credit, not enough income and we have significant supply disruption due to Covid and Russia policies. The situation in 2022 is far worse than it was in 2008 and the experts are all surprised.