Softening house market?

SF will become FF of the 90s and 00s if they get into government. That much is certain. They'll resort to populism much in the same way FF did.

I just don't believe most people care, one way or the other, 90% of those 70% aren't moving any time soon and the prices are simply a curiosity. The idea of 'wealth' in a house should be hung out to dry after the revolution in any case :)

Because equity is security...

Oh they care, prices go up people feel richer whether they sell or not, they spend more and feel happier there’s enough research on this if you Google it.

Applying this just to Ireland is silly, every economy relies on house prices rising it creates wealth, look at the gentrification of areas that were rundown to bits, the renewal of Smithfield wouldn’t have happened without rising house prices.

Wouldn’t have attracted all the trendy restauraunts, cafes, pubs etc.

you only have to look at Netflix to see the property porn programmes to know that this is global.

As to people saying oh everyone will be priced out there’s one thing they’re leaving out - inflation in the 70s a house was 5 grand tops, I have personal experience of seeing redbricks in ranelagh in the early 90s at sub 100k a pop,

I was renting a 2 bed in drumcondra for 350 a month in 1995 but my salary which was codnsidered pretty good at the time was 11grand a year I came away with 760 a month, so it’s not like house prices will rise but everybody’s wages stays the same.

You will get a five year fixed for 5.6 %. Remember as well in the USA there is the jingle mail option. Mortgage loans in the USA are non recourse.

Obviously the lenders cannot access longterm deposits/funding at low rates. Historically there has been a large variation in there 30 years rate. That 2.5% rate was a tad above that and it was a historical low. Over a 50 year period the median would be 5% but the average a tad above that

https://fred.stlouisfed.org/graph/?g=NUh

Again DT you are waffling

You'll be accused of waffling

I want to trade up if possible, have equity in current house, wages have increased considerably for both of us in the past 6 years.

Today’s new rules doesn’t change anything for us, if anything the houses we are in the market for might go up slightly and prices us out of the market.

We have 2 young children and saving for a move but the amount we are saving doesn’t meet the rate the house prices are increasing.

My own tuppence worth I don’t see the market softening at all unfortunately on the back of this news.

That’s fair enough and I get we weren’t really the ones targeted.

We will simply have to sit this out for a while and see what happens in the next couple of years.

On a side note I thought winning the lotto would feel better!!

There is no inconsistency. I posted two things:

First, that if a person took out a loan that was 4X their salary, then if interest rates went to 5%, interest would accrue at a rate equal to 20% of their gross take home (at least initially). That is simple mathematics.

Second. I posted that it is not that long you could get a 30Y fixed rate mortgage in the US for almost as low as 2.5%. Today it is 7%. You yourself included a link which confirms that.

I didn't post anything about Cairns or about the stock price of Meta or the price of Bitcoin. I didn't try to say that people in Ireland can only get mortgages in the US or anything else you are imagining. I posted the two facts above. If you want to run off and pretend that I said something else just so you can have a rant with some waffle that is irrelevant to my post, then there isn't a whole lot I can do about that. There is no need for the attitude

Donald you are getting uptight. Take a chill pill.

You are joining the Chicken Licken brigade. You have a tendancy to now quote one piece of data and only want that piece of data dealt with. That is binary thinking. It's lacks overview.

There is posters on here making comparisons with what is happening in the US and UK now. In the UK we have a party in government who could be described as Sinn Fein( ourselves alone) but from a different political ideology.

https://www.instagram.com/reel/CjFT4ByJl9o/?igshid=YmMyMTA2M2Y=

Truss has managed in a few weeks ( even though distracted by the death of the Queen and her funeral) to collapse the UK . Because of this the UK bond and pension market is in turmoil

You posted about the US mortgage Interest rate. Will this happen right accross the EU. Will it happen Ireland. Will what is happening in the UK ( which is mostly the Brexit dividend they did not expect to becoming home to roost).

Quite simply there is no indication that what you are indicating will happen. As I said in the USA most money is held in investments not on deposits and definitely not on short term deposits. The FED interest rate hike is exposing this.

While the EU languished in negative interest rates the US has never gone there. For the last eleven years the EU has been dropping interest rates we have spend longer in negative interest rates than it takes the Tory party to elect four prime ministers. Pre COVID the US rate was rising and was at 2.5% and then dropped to a quarter of a percent. It has literally jumped from there to it's pre COVID figure and has continued climbing.

Remember the US is not suffering as much from fuel inflation as the EU. They have ingenious supply. Therefore the US is trying to suppress general inflation. The EU is trying to suppress energy induced inflation.

You do not want to take context into account. Everything is 1+1=2 at present with you. Binary Donald binary, waffle in other words.

In another post "FF is the party of homeownership" - Housing for all is a shambles so they're clinging to the CBI rules as a win.

Anyone who rushes to buy on the back of this "news" is going to get so badly burned. Government should be ashamed.

Rates are going up, this is all that matters. Property prices are going down.