Cracks AppearBanks are bailing on small mortgages, driving buyers to risky alternatives

submitted by BlackhaloPurity Pony: Pусский бот from (thehill.com)

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[–]captainramen🇺🇸🛠️ MAGA Communist 🛠️🇺🇸 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (0 children)

Twenty years ago, the median home cost less than $200,000, and banks routinely approved mortgages for half that amount. Today, the median home costs $437,000, and buyers struggle to find banks that will write mortgages for less than $150,000.

What the fuck? People who are borrowing less are less risky for banks.

Well the contradictions continue to mount and as long as we maintain this fiction of a private banking system it's gonna get more 🤡

[–]BlackhaloPurity Pony: Pусский бот[S] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 2 fun -  (0 children)

Third of student borrowers spent money [sic] they thought would be forgiven

Twenty years ago, the median home cost less than $200,000, and banks routinely approved mortgages for half that amount. Today, the median home costs $437,000, and buyers struggle to find banks that will write mortgages for less than $150,000.

Also 20 years ago rates were 5% on that $200K for $10K of interest vs. $30K of interest at 7% now, with $60K of median household income vs. $70K. I suspect that it's less the banks, and more the borrower, looking for cheaper, riskier alternatives.

Real Median Household Income

Median Sales Price of Houses Sold for the United States

This suckers going down. Just not quite yet.