Why Fed Rate Cuts Aren’t Making Mortgages Cheaper

[@MrHav1k]

The younger generation lost by not buying up all the foreclosed houses when they were in Kindergarten. Damn them wanting to go outside and play instead!!!

[@michanel888]

And where would the kindergartners get their $$ to buy the house? Milk money? 😂😂😂 And they can’t sign a deal till they are 18, then they are busy paying off school loan 😂😂😂

[@RossMalagarie]

sorry those cheap fixer uppers are for corporations to buy oh and the middle priced and the upper priced houses are for the corporations to buy too. And they pay cash, and they pay 175% the asking price. Then they rent them out at 5times the normal price.

[@darkwing3713]

And some of them foolishly refused to buy a home before they were born! What were they thinking?

[@soldog8191]

It's not the mortgage rates that are a problem. It's boomers thinking that there 1000sq² home is worth 750k with no yard and on street parking when the house the neighborhood down the street sold for $800k with 2 acres of land and 1400sq² and it's recent construction. I'd rather pay high mortgage rates on a house that costs 300k vs 800k. Housing market needs to crash like 2008 again for things to normalize. The best time to buy a house was 30+ years ago. So millennials and younger generations will rent or stay with there parents till they are 40+. It's also terrible you have corporations buying up the fixer upper houses and selling them for absurd pricing.

[@nongnaphass8828]

Hey but some of those kids just bought the house and paid in full with cash!! Like 26% of home buyer and all time high?😂😂😂the investors not a problem after all😅

[@_TheDeanMachine]

Get corporations out of home ownership

[@SnowBalling]

Corporations are only a small part of the problem. Fix zoning laws, subsidize new housing development to increase supply, and house values will come back down to earth.

[@mr.castle]

​@@SnowBalling Accurate too, but there's no incentive to do this while corporate is still deep in residential real state.

[@AK255.]

Nah its just your entitled loser

[@markmilitant]

@@SnowBallingsite your source

[@zzzT.]

24% cash buying rate means the very well off are buying houses right now 🤠

[@jeremiahm1413]

Remember how we were told ALL YEAR "once the Fed starts trimming rates, mortgage rates will go down!!!" - yeah...about that.

[@Jaigarful]

Yeah I bought my first place last year, kept getting told to wait because it would go down. There's no way its ever that low ever again, and if it ever dips below 4% again, the FOMO will be huge and the market will be so insane that you won't be able to find a place.

[@mdog6726]

“Transitory” 😂😂😂

[@samsonsoturian6013]

It's a mathematical fact they will

[@jonathantaylor6926]

@@samsonsoturian6013 Lol no its not.

[@gonnabehappy]

Nah, you don't understand how market rate works ​@@samsonsoturian6013

[@thisfoxgames]

The damage has been done, nobody is going to lower the asking price on their home. Half a million for what can be considered a started home is ridiculous.

[@darinherrick9224]

Someone who actually wants to sell it will.

[@memoperez7842]

You have to realize many of those people are paying a high interest rate and they indeed paid for an overpriced house. They have no interest on losing money.

[@thisfoxgames]

@@memoperez7842 you mean the ones that bought it for 200k a few years ago and now want 500k? No, they're just greedy.

[@Chocochiphoneydip165]

@@memoperez7842unless that employment rate keeps ticking up

[@robbank8027]

Greed... US dollar has been collapsing. Assets have value, currency doesn't. War and government spending on snake oil has consequences.

[@MaxVids1]

Ugh, $1,373 a month vs $2,222 hurts a lot.

[@johnnymichael1804]

How about 5600? Yeah. That's me.

[@Hanmura_]

That's the crazy thing. All that money in interest . It's not a 5 year loan, it's a 30 year loan.

[@juanlopez3000]

@@johnnymichael1804bro let me guess, California

[@earl-d4n]

lenders owe YOU nothing. they like the arrangement, LOL!

[@Sonofawildanimal]

ACTUALLY CRAZY

[@MrHav1k]

The record high number of cash purchases is due to CORPORATE BUYING!! The average person can barely come up with the down payment today, let alone pay all cash.

[@Rommie26]

Nope Mass illegal immigration putting a chokehold on the housing supply

[@TMoney-wt1cw]

Not just corporations… I live an hour south of Seattle, in what used to be a very rural area until recently. During coronavirus lockdowns, all the rich city people working cushy remote jobs came down to the cheap areas and were buying all the houses at super inflated price with cash. While all the people working class people with lower earning jobs were forced to go on unemployment or work crappy jobs like fast food or grocery stores. But sure, let’s just blame corporations I guess.

[@jonathantaylor6926]

Home's don't FEEL unaffordable... they ARE unaffordable. This is what happens when a feckless Central Bank prints and buys trillions of dollars of government debt to artificially drive down interest rates. The entire RE market got repriced when you could get a 30 year mortgage for 2.85%. Of course mortgage rates are going up- investors aren't stupid and they are legitimately worried about future inflation and don't want to get paid back in confetti. Longer dated debt, 10+ years could care less about the FED's stupid Federal Funds Rate.. that is 24 hour debt with zero duration risk. Longterm and short-term debt are entirely different markets. Mortgage rates are going higher.

[@francismarion6400]

They are stabilizing the housing market in Ukraine.

[@linusmlgtips2123]

it's not the interest rates, it's the massive lack of supply

[@-Swamp_Donkey-]

#Jews

[@memoperez7842]

You said it right!

[@tylertass9983]

Let individuals borrow from the Fed at the same rates as the big banks.

[@memoperez7842]

That will be the end of capitalism. Anything that does not benefit the billionaires is deemed socialism.

[@aeroeng22]

why? the risk for individual borrowing is substantially higher than the big banks. Your idea makes no sense.

[@Sangramoire]

​@@aeroeng22that's only true if you isolate your idea to a single individual. The risk is the same when opened to all individuals because of the collective pool of money from everyone. It's the same risk banks take. It doesn't change just because who the money is being borrowed from is different. It's the same people borrowing and same people repaying it. So same risk.

[@sarawilliam696]

Honestly, this situation makes me feel uneasy, particularly with the Fed's decision to cut interest rates by 25 bps. It indicates deeper economic concerns, and I'm uncertain about my $130K investment strategy, especially with the possibility of not just a recession but potentially a depression.

[@NicholasHarmon-ow3jl]

Just get a financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but I'm comfortable in my financial environment.

[@carssimplified2195]

I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m

[@PatrickFitzgerald-cx6io]

How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

[@carssimplified2195]

‘’Aileen Gertrude Tippy’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@PatrickFitzgerald-cx6io]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@dieterjacobs9350]

I'm very disappointed this didn't mention hedge funds buying entire housing developments..... A huge impact....

[@Rommie26]

Nope Mass illegal immigration putting a chokehold on the housing supply

[@CharlieBam]

The impact of hedge funds was to help in driving up the cost of homes, and was facilitated by super low rates. Hedge funds aren't responsible for the actual lending rate staying elevated while the funds rate is being cut. This is happening fundamentally because, even though it's getting cheaper for big banks to borrow from the fed, the risk that loans will be defaulted is going up

[@dieterjacobs9350]

@CharlieBam ... Hedge funds buying up thousands of homes across the country has dramatically decreased the houses available for individuals to purchase.........driving up the competition for the remaining homes, increasing the cost of homes.

[@stevechrollo8074]

Only 6% of the market are hedge funds in housing. Stop with the lies

[@JetSkiBuyFixPlaySellChannel]

Air bnbs are also a factor.

[@kbrizy7490]

Because companies are banking on us being used to the high prices.

[@B126USMC]

That's right. The 'powers' control our lives. They decided to create 'covid' as a 'smokescreen' to jack up the prices of everything. They blame it on 'inflation' that THEY created. About every decade they pull off the same 'BS'......

[@krztaz3]

This is why Luigi is being praised not scolded for doing something about the current system. Someone's going to loose their home (owned or not) and do something about something..😅

[@earl-d4n]

pt barnum would LOVE it here in our times. PLENTY of suckers to go around. AND they are traitor trump voters TOO! what a scam bonanza!

[@nathanluker9889]

American dream is dead for middle class workers.

[@FutureDreamZz]

Gotta be asleep to believe it

[@Jwdude123]

Thanks to Joe Biden

[@bobshagit]

American Dream was a con we never left the crown and its become more apparent than EVER

[@javierg.249]

​@@Jwdude123 soft in the head like Trumps diaper?

[@earl-d4n]

yep, swarmy elon gonna see to that!

[@ddc2343d]

I feel fortunate. I locked in at 2.75 but by the time my mortgage close it was 2.9. I'd be paying over $1000 more a month if I had to do it today.

[@kittymogulco]

Wow. That is a very good deal in this economy 👍

[@Shaojeemy]

Yup all my friends sitting at 2-3% said they are dying with that house 😂

[@pheasantnoetic7075]

thats the thing. I see in comments of similar posts/videos of people blaming others for "not living within their means and work harder" but the truth is a lot of those commenters absolutely could not buy their house in today's economy (even just a few years ago!). It has gotten exponentially harder/worse **not saying you're one of those people btw.

[@pheasantnoetic7075]

@@Shaojeemy with the way things are going, a lot of us gonna be dying in other peoples' houses ..

[@samsonsoturian6013]

A lot of people took too much advantage of that and now are bankrupt or stuck working jobs they hate

[@EdwinNaranjo-Valles]

My parents bought a house in 2012 when their mortgage was going to be $2,200 compared to them paying $1200 a month for rent. Over ten years on the mortgage is half that and rent is now more expensive than when they bought their house. It’s worth it to buy a home so long as you can reasonably afford it

[@snwboardguy04]

This isn’t a guarantee though. HOA fees can go up. Mortgage insurance can go up. Property taxes can skyrocket.

[@GalaxyTabFamily]

We’re focusing on the wrong things… House prices are too high! If those came down by 30%, I won’t care what the Mortgage rate percent is

[@AChillin01R]

Exactly. That is how it was in the 80s. That is why baby boomers were able to buy homes in a crazy amount even though rates were around 10%.

[@fixerdrew02]

🤓 akkuuuallly homes are an InVeSTmeNT /s Get hedge funds and people with multiple homes tf away from the SFH market. It should never be considered an investment

[@AChillin01R]

@@fixerdrew02 Exactly.

[@rondas7772]

Exactly

[@chrishewitt5826]

Both are important and are also related

[@heyaswinp]

Rates are not a problem. Mortgages should cost something, the issue mainly is the home prices.

[@samsonsoturian6013]

They're virtually the same price they were in 2021. On a 30 year mortgage at current rates you will spend more on interest than on house, and that appears to make houses more expensive

[@jonathantaylor6926]

Rates should be 10% with no more than a 15 year term... but na, the last thing the system wants is a bunch of debt free 40 year olds with a paid off house and a MBS market where you could make 7% risk free. No they want us all to be debt slaves and forced to invest in the stock market to see any kind of yield.

[@jonb740]

Excepts for prices don't come down.

[@dunggg]

@@jonb740 it starting to come down in big cities where people overpaid. This is true to places where you have military presence when they are forced to moved. Force movers will face reality soon.

[@samsonsoturian6013]

@jonb740 they can and have gone down, it's just not likely due to inflation and rising population density

[@AKT0B0S]

BUILD. MORE. HOMES.

[@AChillin01R]

Building homes will not fix the problem. Not at the rate business are buying up homes away from the average person. People are buying homes not to live anymore. They are buying them for investment and then selling it. It is no longer I buy a home and this is my home for YEARS.

[@AK255.]

Ya why don't u got start building some lazy

[@gavinw197]

what do you think people are doing? they can't find a house so they pay to build one. that also costs money, back in the day men used to build their owns homes on free land.

[@AKT0B0S]

@ you’re an idiot. Do you not realize how undersupplied we are? Build 10 million new housing units and this problem vanishes.

[@DonJulio4649]

@@AChillin01Ryup. Corporations are buying up houses more than ever now. There’s even stocks average people can invest in for these companies making it worse. It’s almost like there needs to be regulations in place to prevent stuff like this happening by not allowing corporations to come into real estate for better good of America. But as soon as you say that you got brainless people screaming commi or socialist who don’t even know what it truly means but just love the word.

[@thedman05]

This is a supply side issue that is being exacerbated by both individual and corporate greed. You can’t have affordable housing when you have a bunch of corporations buying up large swaths of affordable homes and outbidding single buyers. That just makes a bad issue worse because we already have an issue with individual investors owning 10, 20+ properties and becoming rent seekers. Pair that with an environment where existing home owners do everything they can to prevent new construction of homes to protect their home values and you have an environment with high rates and incredibly limited supply, ridiculous housing prices, and an environment with incredibly low mobility

[@SnowBalling]

Zoning laws blocking new housing development is the big issue. If there's enough supply, it won't make sense for corporations to keep buying.

[@AChillin01R]

@@SnowBalling Even with more supply they will keep buying and buying and out bidding the average joe every time.

[@chadxlr3978]

Corporate greed😂 my guy everyone is greedy look at the home sellers who refuse to sell their tiny box homes for under 500k

[@AChillin01R]

@@chadxlr3978 True but the Corporations are the ones buying those homes not the average joe.

[@samsonsoturian6013]

Liars get scalped

[@technicholy1299]

It's because we are getting screwed by crooks.

[@samsonsoturian6013]

Only you

[@-Swamp_Donkey-]

You spelled jews wrong. I get it though **wink wink**

[@TreyMiller-j5h]

You know nothing mace windu. Took you 3 movies to realize the with were under your nose

[@jacobarndt2153]

​@@samsonsoturian6013 nah. Only you broke boy😂😂😂

[@Ap_twsh]

hey at least the politicans voted for a 40% raise in their salary. They don't have to suffer like the peasants.

[@sew2prosper]

I was blessed enough to have gotten my home in the middle of the pandemic at 3.2%. Unless rates go below that ever again, I am sitting right here.

[@bepriceless]

It's called greed. Rich people would rather destroy their own country rather than asking for a realistic amount, then they go to war against homeless people. It makes no sense.

[@ajr993]

No this is over simplistic garbage. It's called supply and demand as explained in the video. It's a lot more nuanced then just greed, it's a complicated market that gets influenced by the fed. Did you even watch the video?

[@optick3554]

Right. Because patriotism doesn't exist for the rich. It's just how they organize the rest of us.

[@SnowBalling]

Where the greed comes in is the zoning laws. The houses are worth whatever people will pay, but they block new housing development with zoning laws to keep house values high.

[@lakeguy65616]

based on your comment, you have zero understanding of economics. Mortgage rates are high(er) because they are competing for savers' dollars with consumers, businesses, state and local governments, and.... the Federal government. In case I'm not being clear, the Federal government is crowding out all the other borrowers from the credit marketplace. If the Treasury borrowed less, more dollars would be available to fund mortgages (at lower interest rates).

[@josha.bdoge2]

@@SnowBalling You've seen the first chart presented on this video; What is the point of making more houses if people can't afford to buy them??? From 2021 to 2024 you're literally paying four times more in interest than you would have paid 3 years prior. THIS IS GREED plan and simple!~

[@mikeshafer]

Nobody cares about the mortgage rate. It’s the PRICES of the houses that scare me.

[@samsonsoturian6013]

Watch the video you id10t. With current rates a 30 year mortgage will cost more in interest than in house. Housing values aren't up, in fact in select places they are down because few can afford the monthly payments and extra down payment.

[@utah2nyc250]

I see you are not too smart 😂😂😂 imagining paying 2500 mortgage and 1700 goes to interest

[@reyesarg]

Greedy real estate agents don't help my cause for purchasing my first home. Their commission should be 1% on both sides. If the fed drops interest rates to 1 percent then corporations would borrow so much money they would buy as much as they could. Maybe the fed should lower interest rates to 1 percent for first time home buyers.

[@lakeguy65616]

essentially, the only interest rate the Fed actually controls is the Fed Funds rate which is the overnight lending rate between federally insured banks. The Fed doesn't control interest rates but it influences them to a small degree.

[@sacrugby1]

The buyer doesn't pay the commission.

[@AChillin01R]

@@sacrugby1 But now they can with the law that passed.

[@raymonddamm3214]

@@sacrugby1 Where do you think the money comes from? Just like credit card processing fees, its always the buyer footing the bill.

[@bboyizzy]

Realestate agents have nothing to do with affordability.

[@StephanieG.Augustus]

Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[@CharlesT.Foster]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@heatherj-o5j]

Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

[@JasonB.Chisolm]

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[@RobertS.Headrick]

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[@JasonB.Chisolm]

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[@Jakesmusings]

I think that the growing manipulation by investors that are buying up a large amount of the housing has also increased housing prices and the government isn't doing anything about it and these reports don't adequately shed light on how they corrupt the system.

[@bobmcbobbington9220]

No. It's a lack of builders caused by the housing collapse of 2008. Every month, we are missing 50,000 - 100,000 houses that should have been built and that has been going on for 17 years. Do the math. It doesn't matter who is buying the houses (to an extent). What matters is that the houses are too few. Supply and demand.

[@keithmenzer6454]

It’s no mystery. None at all. It’s greed. Record corporate profits across the board while the middle and lower class is struggling with inflation and price increases. It’s a massive redistribution of wealth, from us to CEOs.

[@ChelseaHandler-ip4ku]

Investing without proper guidance can lead to mistakes and losses. I have learned it from my own experience. What do I bring you? If you are new to the world of investments or do not have much time, it is best that you receive advice from a financial advisor.

[@AarushSyed]

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[@ChelseaHandler-ip4ku]

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[@AarushSyed]

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[@AmaPk67]

he communicates using telegrms, using the username.

[@withmonis_z]

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[@ridstrivedi]

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[@GiovanniThap]

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[@sheabilladeau1392]

I feel slightly bad, only slightly, for those that overextended their finances to purchase in the last two years, buying into the statement that they could refinance when rates inevitably went down. Don't trust MSM or real estate agents who have a direct incentive to sell you a home. Your interests are not aligned. Be informed and make smart, safe, decisions. I am so glad I didn't overextend to purchase a home at a stupid high price. Inflation has made too many things too expensive and you have to be ready for a rainy day, or month, or year.

[@straysheep5312]

I've always said home buying should only be allowed by American people and not by corporations (real estate businesses) because corps are only looking to make profit from real estate. An average American is maybe looking to sell the home to buy a bigger home and for the few that have the wealth to own multiple homes, at least other Americans have a better chance competing with them vs the real estate businesses within the home market. But I think it starts with corporations being protected by the Equal Protection Clause in the 14th amendment which states "corporations are people" and should have individual rights like a person. Remove this clause on corporations, and make home buying exclusive to individual Americans, ONLY THEN will the home market go back to being normal.

[@Hans-gb4mv]

Who says that will lower prices? Companies that build a lot of houses to sell the houses can get much cheaper prices for building materials than you, as an individual, can ever get. That's where a big part of their profit margin sits.

[@jonathantaylor6926]

So there would be no rentals at all?

[@davidhill7071]

Developer's are building to sell. They want to recoup their investment and make a profit. Then move on to the next development project. Corporations are buying to own. They want to turn everyone into a rentee. That's a neverending stream of income for corporations.​@@Hans-gb4mv

[@mydressmemos]

I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

[@JacobsErick-u8r]

It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.

[@richardhudson1243]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $375k to around $650k.

[@LUCIASMITH-d1z]

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[@richardhudson1243]

Her name is “Melissa Terri Swayne” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@winifred-k9e]

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[@aaronx375]

So in other words, we’re screwed?

[@StevenKohman]

You don’t say! Tell me something I don’t know Buster.

[@rathelmmc3194]

For now. The current situation is untenable.

[@Nate12-]

No. Just put your money in other assets and watch from the sidelines until the game is fair 😊

[@Sonofawildanimal]

Unless you bought a home before 2020. Then you’re OK. New home owners after the pandemic are screwed. Unless you got money!

[@AceLopez1]

Yep unless you’re a baby boomer. Houses during their time were about $40-60,000. I wish houses were at that price today.

[@albertethan7093]

$80k every 4 weeks! I now have a good house and can now afford anything and also support my family😎

[@RyanClarence654]

Huge, how did you achieve such biweekly returns? I'm a newbie and I've lost a lot of money investing on my own. Please how do I go about it, the year is almost coming to an end, how can I make profit?

[@BrianKingy]

Hello, I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?

[@MuratAydin-un5tu]

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[@ALBERTAaron-zt2xy]

The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

[@everybodystaycalm5090]

Between corporations buying houses and home builders controling the supply to keep the prices high. The average buyer gets priced out and risks more on a higher interest rate in order to buy a house.

[@francismarion6400]

Your wages just aren't keeping up with inflation.

[@bobmcbobbington9220]

You think home builders are intentionally not building homes...to make money. Good god people. In 2008 home builder companies were almost all wiped out thanks to the housing collapse. That is the reason. The builders no longer exist. It's not a darn conspiracy.

[@ltkwok]

The US is unique in that you can get a 30 year fixed rate mortgage. Everywhere else in the world, interest rates are floating. Interest rates and therefore your mortgage payment changes every year if not every month.

[@memoperez7842]

Not true. In Mexico and Brazil rates are also fixed. There are fluctuating products too, interest l only products as well. It is up to the buyer to choose. I actually had until recently mortgages there.

[@Rebel635csi]

Not true. In Canada you can lock a rate for 5 years. What is true is that US you can lock a rate for the entirety of the term. Don’t know anywhere else you can do that.

[@mrchad97z49]

what is worse than Mortgage rates? HOME PRICES. Because actual dollars you pay in interest is a % of the sale price. The sale price is what you pay off. The sale price dictates what you pay on insurance, property taxes, Realtor fee, PMI and down payment. If your house is higher, then so is everyones house. So you are not richer if prices go up. And if you move, your next house will be proportionately higher too. If you do not move, then why do you want a higher home value? If you just stay there and do not move, it just means you will pay higher property taxes. So it makes no sense! Housing has a normal rate of increase, which is historically about 4.22% per year when you average each of the annual rate of increases for the past 62 years. This is based on FRED's historical average sale prices since 1963. So, Based on that rate of increase of 4.22%, if you go back to 1963, which had an average sale price of $19,300, and if you add 4.22% every year... It means the current sale price for 2024 should be $237,000 instead of what FRED reports as $520,000. So this means home prices are roughly double what they should be. But even if APR drops to 5%, you will still pay 2x the sale price over 30 yrs!! That's a million. Are you sure you want to sign that paper? Are you that confident in your job? Do you think you will get all your equity back in case of default and foreclosure?

[@chiplangowski3298]

No matter the price, it is still better to own than rent, compare identical properties. That is over the long-term, of course. There is not a single person that bought a house following the 2008 crash that is sitting there saying "I sure wish that I had been throwing away the equivalent of my mortgage each month on rent instead of gaining a half-million in equity."

[@mrchad97z49]

​@@chiplangowski3298 ok Fine. The next crash that happens, I will make a purchase if God says Go. Coincidentally, I am actually looking to buy, but I am looking now at a much cheaper house, one that is just for shelter and that is not glamorus, possibly a home in a rural area, and one that is "recession proof" because if it only costs 60k, then I will not lose as much as if it was 500k. And I have a Electrical Engfineering degree from a nationally accredited college and 20 years in telecom and debt free, no car payment, no credit cards, never married, 800 credit score and single.. And I say all that , and I cannot afford a house. Even with being a first time buyer and getting a 25k first time buyer incentive from the government would be nice but I would prefer a more appropriate purchase price rather than the 25k gimmie on a house that is overpriced by double. If that is the case then I would rather rent a little longer

[@mrchad97z49]

@@chiplangowski3298 ok fine. I will buy a house the next crash that happens if my maker says Go. But actually, I am looking to buy, but it will be a serious downgrade for shelter only unless something changes in the market. I will not make the next guy rich. And I am debt free, I hhave an electrical engineering degree from a nationally accredited college, debt free, never married, no carr payment, no credit card payments, 800+ credit score, and 20 yrs in telecom... yet I cannot afford these prices. But ya I am looking in rural area's for houses under 100k that are for shelter and recession proof, not one for glamorus sake. I could get a first time buyers incentive if Kamala was president, but I would rather buy at an approopriate level instead of taking a tiny 25k handout on a house that costs double its real value. In the meantime, I will wait. I have already waited since 2017 and even before then.

[@mrchad97z49]

@@chiplangowski3298 ok fine. I will buy a house the next crash that happens if my maker says Go. But actually, I am looking to buy, but it will be a serious downgrade for shelter only unless something changes in the market. I will not make the next guy rich. And I am debt free, I hhave an electrical engineering degree from a nationally accredited college, debt free, never married, no carr payment, no credit card payments, 800+ credit score, and 20 yrs in telecom... yet I cannot afford these prices. But ya I am looking in rural area's for houses under $100k that are for shelter and recession proof, not one for glamorus sake. I could get a first time buyers incentive if Kamala was president, but I would rather buy at an approopriate level instead of taking a tiny $25k handout on a house that costs double its real value. In the meantime, I will wait. I have already waited since 2017 and even before then.

[@mrchad97z49]

@@chiplangowski3298 ok fine. I will buy a house the next crash that happens if my maker says Go. But actually, I am looking to buy, but it will be a serious downgrade for shelter only unless something changes in the market. I will not make the next guy rich. And I am debt free, I hhave an electrical engineering degree from a nationally accredited college, debt free, never married, no carr payment, no credit card payments, 800+ credit score, and twenty yrs in telecom engineering... yet I cannot afford these prices. But ya I am looking in rural area's for houses under $100k that are for shelter and recession proof, not one for glamorus sake. I could get a first time buyers incentive if Kamala was president, but I would rather buy at an approopriate level instead of taking a tiny twenty-five thousand handout on a house that costs double its real value. In the meantime, I will wait. I have already waited since 2017 and even before then.

[@desiv1170]

Homes are overpriced. We build too many HUGE homes. We don't have enough new homes. Zoning/NIMBY problems. Too much private equity in homes. Professionals: The problem is high mortgage rates!!!! .... er... No... While lower rates would be nice, if there were more affordable homes, fluctuating rates (as they always do) would be just something to be aware of, as they historically are. 3% was abnormally low. 18% was abnormally high. 6%-7%? That is not the problem with the housing market.

[@bobmcbobbington9220]

The reason isn't any of those things. in 2008, there was a housing crisis that wiped out builders. We are dealing with a supply/demand problem because new homes aren't being built, and new homes aren't being built because the companies that build homes don't exist anymore. The "Zoning" hasn't changed.

[@desiv1170]

@bobmcbobbington9220 Considering I said it was partially because we don't have enough homes, I see we actually partially agree. :-)

[@pauline-o2q]

Given the re-inverting yield curve and increased market volatility, I'm reevaluating my portfolios, and the outlook is concerning. How should I reallocate funds within my 2m portfolio to navigate the panic and take advantage?

[@JasonB.Chisolm]

The inversion implies anticipated lower future growth, potentially resulting in decreased lending and investment. Hence, finding the appropriate asset allocation and collaborating with an advisor experienced in bear markets is imperative.

[@heatherj-o5j]

After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had major portfolio yields of over 88%, so I'm not going back to relying solely on banks.

[@RobertS.Headrick]

That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?

[@heatherj-o5j]

My CFA Stacy Lynn Staples a renowned figure in her line of work. I recommend researching her credentials further.

[@JohnNgomba-k3v]

I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@rebeltheharem7028]

Long term risk combined with high demand. Higher long term inflation risk demands higher rates. And then higher demand for mortgages require higher rates. And lower money supply also requires higher rates as well (if all the money is being loaned out via credit cards and other debt, there's naturally less money for conventional mortgages).

[@itsa11good23]

I think it’s going to be a long time before I can even find myself in a situation to buy a home. When they lowered interest rates, they exacerbated the problem we’ve had in this country, which is continually not building housing to keep up with demand since 2008. Homes overpriced. They’re probably not gonna go down. The average wage is not kept up with that and interest rates are high even if you lower interest rates you still have the fundamental problem of people don’t want to move out of there current interest rate and wages have not been able to keep up with the insane price increase housing has seen.

[@B126USMC]

You can thank Bill Clinton and his administration for a lot of this.......and the banks...and the weasels ......quite a few businessmen , politicians, and 'certain' groups played a big role in this crises that's only getting worse.......Goes back to "Be careful what you wish for".......especially when you vote. Hell, anymore, I personally don't think the voting process matters. The powers that behave control of that too. They're going to place I office who they want ( oh they 'let' the people think it was their votes that counted); but it's all manipulated. They win, you lose....no matter ......

[@bobmcbobbington9220]

Lowering interest rates improves home builder businesses. It's cheaper to buy, so they buy, so the builder has to build. The issue is that we lack a supply of home builders, since 2008. You can lower prices all you want, or higher them. If nobody can do the job, then supply and demand will punish you.

[@itsa11good23]

@ exactly. The interest rate situation is kind of frivolous at this point when we have completely gutted, our construction industry. So many of gone out of business since 2008 or have been forced to consolidate and because we live in a late stage capitalistic environment, where endless profits and growth is the goal there’s more margin making higher end housing than affordable housing. Honestly, it’s very similar to what’s happening with the car market at the moment the squeeze is manufacturers don’t wanna build cheaper cars so they’re shooting for that high end which is hurting the majority of Americans.

[@TheAvtrey]

Making housing an investable asset... what could go wrong?

[@vladimirofsvalbard9477]

Because the private market and investors KNOW that CPI-inflation is bs. It is reflected in the treasury note markets, which directly affect mortgage rates.

[@skulltula6799]

Two things. First and most imporatantly - BUILD MORE HOMES to increase the supply. Second is stop letting banks/corporations (and rich individuals) from buying more than 1-2 family homes to drop the demand.

[@notabot1798]

“Normal economic conditions” lol

[@chris-y05]

Actually it can be explained by 1 word: "greed". Although we're talking about "the market" decides the mortgage rate, in actual fact, there are only so many major mortgage companies in US. If they don't get a gentle nudge from the Fed board or the federal government, they will always be quick to raise rates and slow to lower.

[@bobmcbobbington9220]

You are over simplifying. Watch the darn video.

[@Acsana]

26% of buyers paying all cash?! Who are these people? When the median home price (in my area) is $450K, who has an extra half-mil lying around for these homes?!

[@JayBD626]

They are coming from CA and NY where homes are way overpriced and buying up ‘less expensive’ homes everywhere else.

[@AM93000]

Blame the chinese

[@abigaelbalbuena1917]

A good amount are not people, but institutions and firms who have pooled money. To them, outbidding you so you can forever pay them an expensive rent is a good business strategy

[@SlimSevernick]

NVIDIA employees

[@kwv889j]

What affects housing pricing is housing inventory (what's for sale "Right Now") vs demand (Who is buying "Right now"). Right now, there is more demand than supply. Increasing the number of new homes coming to the market can help, but not in the near term. It takes time to build housing. Unless there is some kind of catalyst, such as a surge in foreclosures (as happened in 2008) dumping inventory onto the market, or a collapse in demand, or both, prices will not be coming down.

[@Columbus1492]

Just got mine at 6.1 !

[@JuanDiazSilvermyst]

None of this matters if corporations out bet the sales and turn them into rental units.

[@mikebostic9518]

High rates from the fed haven't helped but so is the lack of affordable housing.

[@samsonsoturian6013]

So what? If you had the money I'm sure your landlord will sell to you

[@setcheck67]

@@samsonsoturian6013 I have a landlord that is currently refusing to pay his HOA fees and I offered to buy it from him and pay the $5,000 he owes the HOA. In his words, "I'm not selling, and the HOA can kiss my a**". Actually I've been offering to buy many homes at their CURRENT value and no one will sell them. If they will sell they say things like, "Actually I'll sell for 500,000" when it's a 340,000 house that has hurricane damage. So I can state with certainty you know nothing and can shut up.

[@bobmcbobbington9220]

Rent or buy, supply and demand is the same.

[@sasstewart1222]

The beautiful thing that the US does well, is the availability of the 30 year fixed. (vs many countries that typically only offer ARM's)

[@AChillin01R]

ARMs played a big part in the housing bubble crash.

[@mikebostic9518]

Need more housing. That would be a start.

[@TomNook.]

Its hard to compete with BlackRock buying up houses

[@krztaz3]

This is why Luigi is being praised not scolded for doing something about the current system. Someone's going to loose their home (owned or not) and do something about something..😅

[@123biggame]

This doesn’t make sense..! People are just greedy, as soon as mortgage rates go down, the price of houses go up. The country needs to figure out a way to get more homes built to decrease the demand.

[@bobmcbobbington9220]

That actually rarely happens. so no.

[@kkadam96]

26% cash buyers are not necessarily coming from corporate firms. Californian's are selling their million dollar homes and relocating with their proceeds to buy cheaper in other states. I live in Texas, and about 80% of the residents in my community relocated to the state in the past years.

[@richiestarks6163]

BINGO! I live in Florida and we see the same scenario. I see a good amount of California and New York state arriving everyday. They are paying cash for their homes and plus more.

[@rondas7772]

This is very true

[@kyeorlam1351]

I guess only people who doesn't own a house like me getting stuck renting in California and can't relocate.

[@SFelectrolysis]

@@kyeorlam1351you got to save to get a good down payment, and find a home in a cheaper area to buy,

[@richiestarks6163]

@ Gotta be creative. I guess the Americans have to stick together like foreigners and all live under one roof, pay off the mortgage and then move onto the next person in the family. Build that wealth.

[@tbd6963]

IM SO TIRED of all the focus on interest rates! New houses are built poorly, in the wrong places, and not what the average person is looking for…therefore inflating prices.

[@jrho8033]

The simplest solution is to BUILD more DENSE housing preferably near public transit. And put a stop to Corporate landlords. It won't solve the whole housing crisis, but it very much will help address it.

[@samsonsoturian6013]

Both will go bankrupt immediately. I bet the lives of everyone on this thread

[@samsonsoturian6013]

This id10t thinks the average landlord is a megacorp

[@rathelmmc3194]

People don’t want that, and you see it in the birthrates.

[@rondas7772]

Obviously you don't live in a large city

[@byronbuck1762]

@@jrho8033 yes. That is a cheaper and more efficient way to create housing. At the end of the day,it’s a simple supply and demand problem

[@XingpingLu]

double the tax rate for each consecutive house owned by individuals or corporations. It will get rid of the housing crisis and generate more tax revenue. The problem is many people are owning multiple houses and renting it out.

[@JohnAdams-vd5dc]

Simple. It's corporate greed.

[@ajr993]

No this is over simplistic garbage. It's supply and demand nuances as explained in the video which you didn't seem to watch. You probably left this comment at 0:01

[@sportsfan1717]

"Corporate greed" or "President I don't like" is actually not the answer to all economic issues like the majority of Americans believe.

[@staticpurge]

I wouldn’t say it’s so simple, home buyers are directly at fault for over paying, getting into bidding wars, etc back when rates where below 3%. Now so many people locked in at low rates (and who spent serious sums of money) aren’t selling, interest rates are higher, housing supply is limited so prices have remained high. It’s tough to get a homeowner who got into a bidding war and spent 100+k over what a typical house was in 2020, to sell at a lower cost all while losing that sweet interest rate.

[@byronbuck1762]

Corporate buyers are 5% of the market, so no. It’s supply and demand. We have under built housing for thirty years.

[@daminh9245]

The real culprit is the prices of the homes, not the mortgage rates.

[@user-ms3ko5gn8e]

Record high house prices make it impossible for first time home buyers. Everything has gone up besides average people's wages!

[@samsonsoturian6013]

Liar

[@DMAN590]

​@@samsonsoturian6013median home prices are 6 to 7 times median household incomes. Historically, they were 2 and 1/2 times household incomes. That's the truth

[@user-ms3ko5gn8e]

@samsonsoturian6013 Shut up you must be rich so it doesn't affect you!

[@thegzak]

In the Netherlands you can transfer your existing mortgage to another property, so you’d only need to take a new loan at today’s higher rates for whatever your old loan doesn’t cover after transferring. Kind of a great solution to alleviating the lock-in effect where people don’t want to sell because they don’t want to give up their old rates.

[@zacktastick8]

Let’s be real it’s because real estate developers & people who buy real estate are greedy & will always want more than they paid. Doing so for decades will balloon the price to where the raw materials to build a house & even labor are significantly lower than what they inevitably ask for it.

[@AChillin01R]

Especially for homes that have not even been upgraded. lol

[@Galworld761]

This does not immediately impact your mortgage rate. Your mortgage rate is the cost to borrow. Low mortgage rates increase home prices.

[@byronbuck1762]

@@zacktastick8 That isn’t remotely real. The market controls prices. A house is only worth what someone will pay for it. Construction costs have skyrocketed such that fewer homes are being built, starter homes are simply unprofitable and builders can only make margins on fancy homes.

[@pearsonhsmith]

Housing prices never go down, they always go up. Now is always the best time to buy a home. In this political landscape, regulators won't do anything sensible and it'll take ages to get regulations passed so it's up to wages to go up. The best thing an individual can do is find a job that pays more or ask for a raise. That's makes the job market competitive for talent, hence raising wages. If you work under a union, bring up the cost of living when negotiating contracts.

[@TG-qr6kd]

That was so dumb my brain hurts now

[@byronbuck1762]

@@pearsonhsmith nonsense. Housing prices go down frequently and sometimes by a lot. They dropped fifty percent in my city in the 2008 recession. I’ve owned six homes over the years. Two I sold for less than I paid, one I broke roughly even on and two went up. Number six isn’t going up attm.

[@greenbean9135]

You sound like a realtor lol

[@flamingosedai1820]

@@byronbuck1762 So what you're saying is we need another housing crash? good! They cost way too much as it is.

[@byronbuck1762]

@ no. What I’m saying is we need to build more houses. It is a supply and demand problem

[@EatMyStarfish]

26% paid in cash!

[@Jecoopster]

Yeah that’s nuts!

[@Eddy-ov4tx]

Rich buying homes in full cash at all time high, hence why there is such low supply. We can solve this problem by taxing those who wealthy enough to buy homes with full cash. Dare I utter those words... THIS WILL STOP THE BS RICH FROM BUYING UP ALL OF THE SUPPLY

[@jonathantaylor6926]

I think thats mostly boomers moving out of high priced regions and getting a million dollars for some dump they paid $174,000 35 years ago. They then move to a cheaper area and pay cash for a 500K home.

[@bnwo]

3:55 Weaker economic data means the buyers who can't buy now because they are looking for more affordability are in an even more precarious financial position, so how does that help people who already can't get into a home?

[@arodriguez2707]

This reporting is totally disingenuous, mtg rates going up didn't make housing unaffordable, it was mtg rates going so low for 12yrs that made housing unaffordable.

[@samsonsoturian6013]

Not really. I guess people were use to buying bigger houses because they could afford the loan, but in this case the cost of housing isn't the problem it's the cost to borrow

[@DMAN590]

​​@@samsonsoturian6013you are so wrong. It's laughable. As I left a comment on a different one of your responses. Median home prices are 6 to 7 times median household incomes. They should only be two to three times household incomes going by historical norms. That is the fundamental issue, not the interest rates. Anyone arguing for lower interest rates is in on the grift or a sheep

[@samsonsoturian6013]

@@DMAN590 liars get scalped

[@DMAN590]

@@samsonsoturian6013 I'd be looking over your shoulder then.

[@DMAN590]

@@samsonsoturian6013 Ironic thing for you to say

[@tarekmoustafa2126]

Let’s see what’s going on: 1. The FED is selling MBS effectively pushing rates up due to increased supply 2. The Fed historically low rates and quantitative easing caused an insane increase in housing prices and a lock in effect that might take decades to resolve. 3. The government is borrowing insane amount of money through treasuries which pushes demand away from MBS effectively increasing rates 4. Hedge funds are buying whole new developments in cash which actually one of the reasons behind the historic cash rate. The solution seems to be Fed should lower its rates and just hold onto its MBS without selling them, the government should lower its new debt to lower supply of treasuries pushing demand into other parts of the market including MBS, and finally the government should lock away any federal, state and local funding as well as tax benefits for hedge funds buying non commercial buildings and builders selling above a certain percentage to them.

[@rickhayes-oh2zm]

they are going up. look up inflation

[@adambartlett2780]

Ban Airbnb in non-tourist areas, put a limit on foreign investment and corporate ownership of homes. I think those three things would make a big difference.

[@AnshMeta-j7r]

Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?

[@Fahima9Tazin]

There are options that spread across multiple banks. I use a non-beginner broker that protest up to 3 million dollars and provide 4.58% returns on cash, it's always a good idea to consider working with an advisor for financial planning

[@JohnMatthew-hq3xs]

Agreed, financial advisors play a key role in portfolio allocation and i've been using one since late 2019 just before rona outbreak. So far, I'm barely 25% short of $1m ballpark goal after subsequent investments.

[@SallyW414]

Please excuse my curiosity, would you mind sharing more info on your advisor? I’m in dire need of guidance

[@JohnMatthew-hq3xs]

Finding financial advisors like Vivian Jean Wilhelm who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@JohnMatthew-hq3xs]

Credits goes to Vivian Jean Wilhelm one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

[@harrishistoria]

Simple answer…they aren’t. Part of this mess we are in is due to how artificially low they were.

[@brianhill8974]

Feel unaffordable?😂😂😂 How about are unaffordable for average people

[@Prod1jbtc]

It’s because of mortgage rates. People keep saying it’s the price of the home, but people don’t get that houses are an appreciative asset for the most part. Houses usually just keep up with inflation, so you can make the argument they don’t even really go up in value. It’s the purchasing of your money that you save becomes weaker making it even harder to buy something that has a higher inflated value due to inflation.

[@Weathernerd27]

I bought a condo in 2021, it was all I could afford at a 3% interest rate making 80k a year. I will be selling it soon because I can't stand the HOA. At 38 I'm getting too old to have a large loan balance, a mortgage isn't worth it if its not paid off or close to paid off when I retire around age 60. I probably won't make enough profit to have a reasonable loan/payment on my next place so I will be leaving the housing market and not getting back into it. I've done the calculations and I'm better off renting a really cheap place and investing the proceeds in index funds, I'll get just as good a return but I won't have the risk of huge HOA assements. Have these greedy idiots thought about what will happen if people don't want to buy houses? If landlords go crazy well I know how to be homeless and hold a full time job I've done it before and will do it again if I have to.

[@AnnistonMahaffy]

Don’t worry. The elites are on watch. It might take a while. But eventually you’ll get people like Luigi Mangioni

[@KishTalksCredit]

Yes, rates are going to stay higher for longer. 😮

[@patrickpowell601]

Didn’t they just cut interest rates a few months ago. Shouldn’t we wait a little to see the changes start kicking in

[@AChillin01R]

It will change very little.

[@jonathantaylor6926]

It changes instantly. The 10 year up 10 basis points today which is a significant move. You will see higher mortgage rates by the end of the week.

[@gentlegiant4067]

For everyone wondering why this is, corporations figured out that they can just raise prices and keep interest high and people will still buy. Why would you ever incentivize lower interest rates? If every bank keeps interest rates high, everyone wins except the people of course.

[@alexanderson4849]

First

[@imakedookie]

Wow you did it! Excellent work, keep it up champ i believe in you!

[@PicktheLotto]

What alternatives do buyers have in this market? 🏠💡

[@Jinchuricki27]

Is this serious? Are you guys seriously asking why mortgages are so expensive? WTF

[@ajr993]

Yeah because it's complex interesting topic. And no, it's not corporate greed before you regurgitate some emotional talking point you heard

[@AChillin01R]

@@ajr993 How is it corporate greed not playing a part in it?

[@PicktheLotto]

Why is there such a disconnect between Fed rates and mortgage costs? 🤔🏡

[@davianoinglesias5030]

Zoning restrictions

[@SP-ve1im]

Not familiar with how things work in the US but Canada also had a rate hike recently years but since the Bank of Canada been aggressively cutting the rate passed a few months, mortgage rate has gone from 6% plus to now low 4%. This will only go down as another 0.5% rate cut done past week, and now many believe that by early 2025, we will likely see around 3.5% mortgage rate...

[@alexriva3402]

This is why single family rentals and built to rent communities are thriving, home ownership without all the costs. Taxes, INS, HOA, maintenance, Mortgage Payments. Yes rents are high because of it. Rent for 5 years, when things return to normal, and you get the feeling of living in a home and not some crappy apartment or parents house, and you get a yard(more privacy), Only problem to this is they are located away from the city due to high land prices the closer you go towards a city.

[@thomasridley8675]

The housing market was broken way before 2020. Low wages and maximizing profits is not sustainable. Your home is worth more, but with fewer qualified buyers available.

[@blazejon]

QE was always a huge unknown when these programs started more than 10 years ago. There's always hind sight "I wish I bought more house," but in the end I think it's a good thing that the real risks of buying a home are more apparent and less subsidized by the Fed. This is reality...

[@jerseys89finest]

Force companies that own property to pay their employees 3 times rent minimum. That would discourage them from wanting to own it. Leave home to the people

[@Diverse0725]

Translation: because of greed, we're not gonna be changing the interest rates on mortgages anytime soon, so why not get an ARM instead? Maybe that will help 🤷🏿‍♂️ I'll pass

[@MarkSenatori]

Been saying this for a time. The Fed's QE in MBS market in 2021 was a mistake. There was no need for that additional liquidity at the time. Especially once you factored in low target rate and all the fiscal stimmy money and PPP starting to slosh around the system back then. Now we're in a predicament with the lock in affect. Combine that with the reverse repo program that started picking up popularity in 2022, and cash definitely got tighter. At this point not reducing rates and doing a reasonable amount of QE would make more sense to right the wrong and support more transactions in the real estate market. I think commercial/corporate space can sit tight for a bit given the recent cuts, but who am I to say anything

[@ryans7097]

There needs to be some type of plan to limit corporations from buying public housing. Another big concern I have is if there is a big push to build more housing, the quality of the houses being built. I feel like every new neighborhood I drive by is super cookie cutter and the build quality looks so cheap when you get up close to the unit.

[@gabrielrichardson5626]

Great video with simple technical definitions

[@flailinginhalers]

Why were rates so low back in 2020 when there were 20 offers on every house? By 2012, it was really obvious that the market had recovered from the crash. They should have been slowly rising, which they were doing until around 2017-18. Then they started dropping again. Never made any sense to me.

[@dmatthews077]

Short-sighted policies have just allowed the wealth gap to widen further. The government needs to put more restrictive policy and taxes that will deter owning over a certain number of homes, and make sure that there are not simple loopholes for corporations (don't punish small business as much). There are a number of solutions to these problems. Update first time home buyer programs to give a slightly better rate as long as they meet certain criteria (e.g. credit 700+, 10% down, steady employment, etc.), so the middle class can afford a home (e.g. .5 % - 1% less for length of loan, or 1% - 2% less for the first 5 years as long as they qualify for the full rate at the time of application; and fixed rate based on current rate after). First time home owners reduced rates would not impact the market that heavily as they are already heavily disadvantaged - according to the National Association of Realtors, first-time homebuyer market share decreased to a historic low of 24% (down from 32% last year).

[@michellegreen1072]

9:03 The Feds haven’t been inactive since they started. 😂😂😂😂😂

[@Tonehawkdawg]

Everyone but the Fed sees how high inflation truly is. Houses are ridiculously expensive, yet continue to go up 4-8% a year. Mortgage rates need to go to 10%+ to stop this inflation. Bond market sees this,

[@truthtable888]

The policy should be revised so that individuals are allowed to purchase land directly from developers. Currently, they are only selling multiple lots exclusively to builders.

[@newtec-kd6vy]

Get rid of the central banks

[@InspireMe819]

Bitcoin and Crypto is trying to do that.

[@newtec-kd6vy]

@ no it’s not.

[@JasonMasque13]

I had no money in 2007. I wish I could have bought a shack then.

[@joshlother9180]

The question must be asked: if the Gov, via some means, ends up back stopping mortgages through the market, why is it not directly funding the mortgage in the first place?

[@aquint5554]

In this market, upsizing means building on your existing home. Gone are the days of ppl moving. This will also push values up. Inventory needs to increase dramatically

[@dontaewoods79]

What happens when people can't afford things? It builds debt right? It's so expensive for groceries, gas. Yet salaries stay the same...where is this going to eventually put individuals and economy

[@TheWestAspen]

Respectfully Mr. Graham, in modern financial theory, all investments (including MBS) are benchmarked to the risk free rate of return. MBS is not the benchmark, it is a response to market conditions. Your statement lacks accuracy to state that it's not the treasury market that drives rates.