Appraisal Volume

[Essexfenwick]

This is what baffles me and I am convinced that such cash sales are propping up the market

Who wants a 7.3 percent mortgage (no points)?

 

[Terrel L. Shields]

Who wants a 7.3 percent mortgage (no points)?

That would have been a bargain when I built my house. I paid 11% plus on construction loan and over 10% for the permanent financing. I refi'd about 3 times and lowered it to just below 7% as my final few years played out. I've had a farm loan that was 5%, but 7% plus minus was the cheapest money I borrowed on home loan.

 

[Overimprovement]

Who wants a 7.3 percent mortgage (no points)?

No one may want that, but even fewer have the cash set aside to pay cash, so when the need (not want) to move or upsize or downsize materializes, only then does the mortgage broker get a call.

The other issue at play is prices keep increasing, so on top of the payments being a lot more, folks are getting less house. It is a wicked two-edged sword.

I personally plan on staying put til I retire from full time work (which stopped being appraising last year), selling and reaping the price increases since we bought in 2020 (will about be empty nesters by then anyway), and doing the travel thing.