Looking for a dark cloud? Is your silver lining getting too….silver? Well, you’re in luck! Look no further, the D & G Media brothers await! They’re always together, lurking behind those golden rays of sun, hiding behind that small blue-sky-day cloud, ready to suck the last bit of hope and positivity out you.
Headlines read “Here’s how a 5% mortgage rate would roil the US housing market“. Come. On. Seriously, D&G? Roil?? You guys kill me.
In this sensationalized CNBC yellow-article the reader is duped into believing a 1/2% bump in interest rates + the recent tax code change will, and I quote, roil the housing market. They claim housing affordability is ‘starting to hurt’.
I LOVE their source in this section of the article….. they reference the prestigious, the ever-reliable, THE go-to, the omniscient ‘SOME‘.
Good job D&G…..good job….
A few things the D&G Media brothers
inadvertently… neglected to include… blatantly omitted from their highly ‘informative’ article:
- 5.95% and $30.14. This represents the difference in a 30-year mortgage payment, based on a $100,000 loan amount, between 4.5% and 5.0% interest rates. $30.14 represents a 5.95% increase in the monthly payment. $60.27 is the difference on a $200,000 mortgage loan – also representing a 5.95% increase.
- Rental Payment (year-over-year) increases in my area range from 3.8% in Fort Worth to 6.2% in Arlington TX to 5.0% in Carrollton TX, according to Apartment List.
- Rent VS Buy – Which is more affordable? In my county, that being the greatness of Tarrant county in Texas, Attom Data shows rent payments to be 35.3% of the average wage vs house payments to be 34.6% of the average wage thereby making home ownership more affordable, STILL, than renting.
- Property Tax Changes – the new tax code caps the property tax deduction at $10,000.
- This might impact less than 5% of Americans AND most likely less than 1% of first-time homebuyers.
- The largest segment of first-time homebuyers are represented by Millennials …. and they’re not pursuing homes with property tax bills in excess of $10,000.
- Personal case-study – I ran my own analysis while completing my 2017 income tax return. $709 = The difference in my personal income tax refund between filing a $10,000 property tax bill and a $12,500 property tax bill.
- I don’t think $709 is going to deter a would-be homebuyer….do you?
According to Cole, 2018 will still be a great year to buy a home.