I’m working on my own “get rich with big balls videos“, modeled after Tom Vu. Gotta get the title right. “Buy with Big Balls”. nah. Maybe. work in progress.rates rising is a good thing this time because of what’s happening with inflation And desperate buyers making irrational decisions. But did mortgage rates have to go from 3% to 6% in 90 days. Good grief, they shocked the markets with that. Also, the Fed was artificially keeping rates down thru the huge infusions of cash. And that has been going in since about 2013. Many people echo your sentiments about the subprime crisis. But I’m not so sure. Yes, subprime lit the match for the last crisis in 2008. And yes, credit underwriting has been much better. But that was also the case with the crashes in 1983, 1987 , 1991 and 1998. by the way, lenders are struggling to survive rite now, in their struggle for loan volume they brought back subprime loans under a new name, “Non QM”, Ficos down to 350. My fish has a 350 Fico. last crash, the cancer spread to all mortgage loans including conventional, agency (Fannie, Freddie,), FHA and VA. I was involved in buying pools of delinquent loans in 2010-2014. We purchased pools of defaulted loans from HUD and from private banks ( Wells, Citi, etc). very, very few were subprime loans. Most were low down payment fha and conventional loans to A paper borrowers. A paper loans defaulted in droves. Many were strategic defaults and not driven by the borrowers lack of ability to pay. Prices went down, people were underwater, they had money to pay but chose not to.
Lets see what happens….watch layoffs in the construction industry. Those are good paying jobs that are one of the first to disappear.
Reminds me of the Wayne Phillips seminars back in the 80’s on how to accumulate real estate using free government money available to everyone.
Rates rising too much is never a good thing but at least this time around we don’t have the same Subprime crisis of 07. I hope anyway.