Fed Walks Back Mortgage Rate Cuts…Are We Stuck at 7%?

Mortgage rates just jumped again. This time, we’re back in the seven to eight percent range as homebuyers struggle to pick up properties without a massive mortgage payment. So, why won’t the Fed finally lower rates when the housing market is struggling so much? And is there a way for you to combat the high mortgage rates by picking up a steal in terms of price? Christian and David, the mortgage experts, are on today to share their takes.
Legend has it that if you wax David’s head enough, you may be able to see the future of the housing market. We’ve never tested it out, but David’s reaching into that big brain of his to give us his best mortgage rate forecast for 2024. First, we’re talking about why rates actually went UP when the Fed announced fewer rate cuts coming this year. If the Fed didn’t raise rates, why are banks raising them?
We’ll also get into the economic factors influencing the Fed’s decision and how hot inflation may keep us in higher-rate territory for longer. But you’re not out of luck. Christian and David share how you can pick up a property for cheaper by using the seasonal swings of the housing market, even with high rates. Want to know what’s coming for rates? Stick around!
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Check Out Another Mortgage Monday Video:
• Mortgage Monday
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Mortgage Monday - Fed to Make BIG Interest Rate Cuts in 2024 as Economic Fears Grow:
• Fed to Make BIG Intere...
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Bankrate: Mortgage rate forecast April 2024: Fed’s uncertain timeline to keep rates at 7%:
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One Brokerage NMLS 2142653
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00:00 How Mortgage Rates Change
02:51 Why Rates Went Up
04:16 Why Isn't the Fed Cutting Rates?
05:57 Buy Before Rates Drop?
07:33 Where Rates Could Go
08:53 Work with Christian and David!

[@michealpnoel]

They raise interest rates, but then continue their obscene overspending and money printing. Such a mess

[@lyleburlingame2276]

Haven’t seen the video yet but LOVE THE INTRO DAVID! I haven’t watched for a while but I’m hooked again

[@yeahjug03]

Snorlax. Sleep then snore was a vicious combo. The best utility Pokémon 🙌🏾

[@motley06]

No rate cuts this year

[@kabughoshifah3521]

For you guys your very lucky in my country Uganda mortgage interest rates are currently on 18% can you imagine buying a house at 18% for 20yrs as a beginner it is really hard for me am still looking for the property that can generate that monthly payments, maintenance and cash flow but it's really not easy

[@Rothbardo]

I hope people buying non-cash flowing deals that D Greene was advising weren’t looking forward to rate cuts.

[@TEFgolfer11]

Arcanine. He was a cool fire pokemon you could catch early on in Gen 1 and he was pseudo legendary in the sense that he had abnormally high base stats.

[@Surf1-28]

Charizard I was too poor to ever own one and never pulled one... maybe once i have enough rentals i can own a charizard.

[@nathaneulslavens4182]

I bought a house in December and now buying a house in April and I’m hoping rates go down to 5 or 6 so i can save on my mortgage and cash flow more.

[@johnm3435]

Charizard. Nothing compares. Don’t want to hear anyone even try to explain why another Pokémon is better.

[@joshrweb]

I don't understand why banks would drop mortgage rates prior to the Fed Funds Rate being dropped. That would be like Home Depot dropping prices before their suppliers do. I've always heard mortgage rates rise more quickly than they drop and that makes sense because that helps lenders make more money instead of making less.

[@dannu56]

Remember everyone date the rate marry the house 😂😂

[@DionTalkFinancialFreedom]

Waiting will cost people. Hurrying will cost people. Two things tell us when to buy. And neither of those things is price or rate.

[@chris24hdez]

7% is the long term historical average. These past 15 years we have been spoiled

[@mdlamerica2754]

Yeah. But not against this level of inflation.

[@RidlysEmptyNetter]

​@mdlamerica2754 In 1964, inflation was 1 percent and unemployment was 5 percent. Ten years later, inflation would be over 12 percent and unemployment was above 7 percent. By the summer of 1980, inflation was near 14.5 percent, and unemployment was over 7.5 percent.

[@nathaneulslavens4182]

My favorite starter was charizard. Anyone who choose squirtle or bulbasaur in the games over charmander was crazy. But my favorite Pokemon in the OG Pokemon? Idk if i had a favorite but Mewtwo was pretty cool, garadoes was cool and the legendary birds were cool and in the game i liked snorlax and ditto.

[@SolveFixBuild]

When we bought our first house we were jazzed to get 6%.

[@Andys_Auto]

Never thought I'd be sharing my favorite pokemon in the comments of a bigger pocket's podcast however I must say Mewtwo was the best!!

[@DanielDoesRentals]

Don't worry about the rates, worry about finding deals that still work with your criteria. If you are sitting on the sidelines waiting for rate cuts you will miss the boat!

[@stevend481]

The criteria doesn't work because of the rates

[@dmckinn2]

@@stevend481you are just looking at the wrong deals. I am finding them all day.

[@BlazingSasquatch]

Christian is sick 🤘

[@ef5842]

Mortgage Mondays: Thanks for your video on this topic.

[@biggerpockets]

Glad it was helpful!

[@iamkeithandrews]

I'll pay a 20% interest rate if the numbers work. Find the deal, forget about rates!

[@exile9237]

When will we see low 4 percent rates?

[@tinyhomeviewer4858]

probably won't be for years. Current predictions are high 5's low 6's by 2026.

[@MrVespermartini]

Federal funds rate has zero to do with mortgage interest rates. federal funds rate changes causes changes in commercial and consumer non mortgage interest rates. mortgage interest rates are determined from market risk, inflation, bond yields.

[@bova57]

Onix a giant rock snake

[@ms.b9093]

Rates were nearing 6% in 2019 prior to the pandemic. We will be lucky if we see 5’s by next year. We will never see sub 4% rates again in this lifetime!! Definitely never below 3%. Those crazy rates caused home prices to double , even triple in too short of a span.

[@ms.b9093]

The Fed rate is NOT mortgage rates!

[@aprilvancleve9463]

Eevee.... Because she has cool evolutions.

[@Hypesurfer]

David please shave the beard. Please!

[@AutomotiveAnatomy]

Snorlax