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Do all those ARM's blow up the economy?

Do house prices fall, lowering taxes, which fucks City/County/State budgets?

ELI5, what would a 1-2% raise in the interest rates do to US housing?

Do all those ARM's blow up the economy? Do house prices fall, lowering taxes, which fucks City/County/State budgets? ELI5, what would a 1-2% raise in the interest rates do to US housing?

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[–] 0 pt

Because of limitations imposed by Prop 13, the most your evaluation can go up by is 2%, tied to the consumer price index. If the index goes up less than 2%, than that is the change.

But I the negative part was an error, sorry. Only two times in 60 years did the expected tax receipts go negative. I think it went negative in 2009, like -1.6% for Los Angeles. It doesn't sound like much, but that something like -$30 million for one year and growth is always expected.