American banks and mortgages?

Best regards for the big pond.

    Colleagues, please explain. Is there a modern problem in US mortgages or banking versus the normal past? Did something change that wasn't there or did something get worse?

    These questions are for my wife who has a great understanding and empathy for the American market and people's lives in relation to the banking system.

Is there anything special?

Ivan

Post pandemic inflation caused interest rates to go from an average for 30 year loan of 3% mid-2021 to 7.8% October of this year. It has started to come back down as inflation is on the decline and sits at 7% today.  Nothing really startling has happened but obviously with the much higher interest rates qualifying for a loan has been a problem for some lower income families.

rsirian1

Post pandemic inflation caused interest rates to go from an average for 30 year loan of 3% mid-2021 to 7.8% October of this year. It has started to come back down as inflation is on the decline and sits at 7% today.  Nothing really startling has happened but obviously with the much higher interest rates qualifying for a loan has been a problem for some lower income families.

Thanks mate - so nothing special is happening.

The Covid virus managed to turn the situation around in almost all countries, including our market almost equally.

So thank you once again and enjoy the Advent weekend.

Ivan

Another problem with the market is flippers, who buy distressed properties, rennovate them and sell them for higher prices. This ususally happens in socio-economically challenged (politically correct term) neighborhoods, which drives up the market value of surrounding homes and makes overall prices rise.