Mortgage Market Reopens to Risky Borrowers
Is anybody else making the supposedly foolish decision to time the housing market?<p>I am financially ready to purchase my first home, currently living in the bay area, but I think right now just looks like a bad time.<p>- A lot of housing price growth is seemingly "priced in" since rents for condos/apartments significantly lower than total monthly ownerships costs (mortgage+hoa+insurance+taxes+etc.), even with 20% down.<p>- The major high paying tech companies are expanding mostly outside of the area. The fresh batch of big tech companies, outside of Airbnb, have an unclear path forward.<p>- Subprime lending, interest rates, the current PEs of REITS etc. seem to indicate an impending housing contraction. So interestingly, dumb money (the consumer lending market) is pricing in growth while the smart money is indicating a contraction...<p>- A lot of VC backed companies are looking bubbly, so if you are at an actually profitable tech company in the area, your relative purchasing power for housing would likely improve if the bubbly companies went under.