Interest rate cuts could 'dramatically increase' home prices

Рет қаралды 9,980

Ай бұрын

Housing starts and building permits data for May came in below expectations as mortgage rates continue to remain high. Pulte Capital CEO Bill Pulte and S&P Global Ratings Homebuilders Director Maurice Austin join Morning Brief to discuss the state of the housing market and its relationship to rate pressures.
"I think it's a little bit of a speed bump. The housing market is very strong. It continues to be very strong," Pulte explains. He notes that big home builders - such as PulteGroup (PHM), which his family originally founded - are in a good position as they "have a balance sheet, have access to the mortgage bond market and, frankly, are taking market share right now."
As the market awaits an interest rate cut from the Federal Reserve, Pulte adds that a cut will "dramatically increase" the price of homes. With more people being able to afford mortgages, demand could skyrocket, creating an affordability issue. Austin adds, "What we've seen is the level of sales incentives remain elevated, and they will continue to be so as long as rates stay higher for longer, which ultimately could lead to negative profitability on the homebuilder side."
#youtube #interestrates #stocks
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Пікірлер: 55

@Aarrenrhonda3 Ай бұрын

In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?

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@LexisWilson436 Ай бұрын

The market is echoing the 2015-16 scenario, poised to reach new heights, but may experience a sideways trend until fed signals rate cut. I recently sold 25% of my portfolio, comprising struggling stocks recommended by certain financial KZbinrs, which unfortunately took a significant hit.

@Garypryde787 Ай бұрын

not their fault, the stock market seems to be more of a casino for gamblers now than a place for investors. even if you were averaging down on ailing companies, its your duty to properly research, buying the dip does not guarantee a rebound

@AngieLayman27 Ай бұрын

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@kortni_animations Ай бұрын

I couldnt afford it anyway. Jack it up 10x for all i care.

@reginafefifofina Ай бұрын

That’s why you can’t-

@jeraldb2868 Ай бұрын

Thank God I finally bit the bullet as a first time home buyer in 2021. Now there is no way I’m giving up my sub 3% rate anytime soon. When it hits perhaps under 6%, would I consider a move. The amount of appreciation over the last couple of years is enough to offset the higher rates.

@beautyborgohain456 Ай бұрын

Noticed some influencers hyping cyberopolis up.

@reginafefifofina Ай бұрын

0:16 too bad there isn’t any government legislation regarding corporations owning individual private homes… or limiting the amount of multi-family dwellings that in conjunction with short term rentals like Airbnb create a rent/mortgage value bubble for working class/retirees/young people:college students.

@sandro3796 Ай бұрын

There definitely should be havent read an argument why there shouldnt be

@bobbyward2440 Ай бұрын

@sandro3796 1. Because it's not as big of a problem as many would make it seem. 2. Old people vote and are a very large percentage of homeowners and half of millennial already bought..the younger millennial and genz don't vote so they are not a priority

@reginafefifofina Ай бұрын

@@bobbyward2440 where did you get your information from… your narrative?

@bobbyward2440 Ай бұрын

@reginafefifofina because we have data on how many homes were being built each year, so this was always going to be a problem..doubling the money supply in 2020-21 only made the problem worse and quicker.. What narrative would I be running on? What would the goal of my comment be? It seems more likely that you are interested in buying a home and you need a scapegoat why you cant

@joesmith3590 Ай бұрын

That would lead to less building. lol.

@terrie001 Ай бұрын

So contradicting lol. First ppl say rate too high tobuy house. Now with cut, they saying price will increase. So either rate cut or not, still can’t buy house. Lol. So only solution is build way more houses than demand to increase supply. But costly materials will also keep price high regardless. Don’t think house will ever get any cheaper in this decade at the rate of this argument now.

@RiteshBalmiki-kp7fd Ай бұрын

Cyberopolis definitely caught wind of the buzz in a couple of forums.

@tonylinardi3089 Ай бұрын

Rates are low compared to historical standards, The issue is prices are astronomically high!

@Needglory23 Ай бұрын

Once they lower rates, home price will increase even more….

@ryanwalters6184 Ай бұрын

Google is failing an AI just from the bot spam.

@ret4kind Ай бұрын

Seems like a scam. Homes worth 250k that were once 50k. A 1950s crap house sells for 5x the price isn't worth 25k.

@walkingjustice3703 11 күн бұрын

@ret4kind I have always questioned the same way too, a 1903 useless structure selling for 300k. A structure that has badly weathered. Insane to think about that

@ret4kind 11 күн бұрын

@@walkingjustice3703 I did the math last weekend. That same house worth 280k is going to appreciate to a billion dollars in 20 years. So a 1950s crap house will be worth a billion dollars. A worthy investment.

@ret4kind 11 күн бұрын

Also, a McDonald's McDouble is going to cost $7300.00 in 20 years.

@paulkelly4731 17 күн бұрын

For mostly political reasons, the Fed will cut interest rates in September..... the stock market will soar, and home prices will soar.... but increases in house prices are not calcuted in the CPI inflation number.

@nickvin7447 Ай бұрын

No mo mo's it actually has an opposite effect. More supply, prices go lower. The end.

@ebutuoy5088 Ай бұрын

Good

@kpgamer-ym9uu Ай бұрын

Noticed cyberopolis popping up in conversations on Discord.

@DeepakSingh-ti8vm Ай бұрын

Saw the cyberopolis hype train leaving the station in a few chats.

@toddgammons9400 Ай бұрын

Rates aren’t the problem it’s the prices

@NWO_Media Ай бұрын

No it’s the Biden administration and all the money printing they did for Covid and shutting down the economy. Biden printed more money in 1 year than all the president combined. The country is over man. Soon they’ll announce their stupid digital currency “cbdc” to fix “inflation” to “save you” it’s all planned read “the great reset”