Mortgage Interest Rates Below 5% by 2026? Why 6-8 Rate Cuts are Coming

Inflation is cooling and rental data is showing that the housing market appreciation as well as rents have stopped climbing significantly. Home mortgage rates currently just below 7% could drop below 5% by the end of 2025 or early 2026.
Home prices have started appreciating again and likely still will as mortgage interest rate drops cause more people to be able to buy a house and what the predictions are for the housing market in 2025 and beyond.
Todd Miller
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[@joesmith3590]

One under realized thing that kept inflation up longer then necessary is the regulatory boards. For insurance and energy they couldn’t immediately pass the cost on and had to wait until the yearly price increase was passed by the boards. I expect the same thing this year with increases being passed for both energy and insurance most places.

[@midwestslim]

2 homes on my street are up for sale one a ranch home and the other a story and a half. they have similar square footage because the ranch has a finished basement . the ranch is asking $550k ,the story and a half is asking $489.9k. The ranch home has a pending offer.

[@user-qx8fs8fe6j]

Oana is basically a genius, it's plainly obvious. Compared to all the "experts", economists, wall street research analysts, Oana's logic, experience, I.Q., and intuition combine to illustrate what the human mind is capable of, which is next-level geniusness

[@GENERALMANAGER-r4t]

NEWS FLASH (which you've already heard about by now): EMERGENCY RATE CUT IMMINENT OF UP TO 75 BPS - AND POSSIBLE ANOTHER 75 BPS COME SEPT. Is it any wonder why buyers will be holding off at this point?

[@Manojwouldgo]

I have two inv properties at 2.25 and primarily home at 5.625. Never giving up my two % rates

[@User-mc2mb]

What’s your point of view on affordable housing soon to be built in Mountain’s Edge? Will it affect the housing value in that area?

[@clipartinc]

In 2007, the Federal Open Market Committee (FOMC) began cutting interest rates in response to a struggling economy. The housing bubble was bursting, unemployment was rising, and the financial crisis was beginning. By the end of 2007, the FOMC had lowered its target for the federal funds rate from 5.25% to 4.5%. In less than a year, the FOMC cut rates by 2.75 percentage points, and by the beginning of September 2008, the target rate was down to 2%. By the end of 2008, the FOMC had implemented a Zero Interest Rate Policy. This still couldn't stop the 2008 housing crash.

[@TalkAboutHouses]

@@clipartinc Because the housing crash was overbuilding by new home builders. So today we have the opposite problem. Underbuilding for over a decade and it’s catching up to us in higher home prices.

[@pjsromproom9378]

People forget what Obama did to this country…😂😂😂😂 He had A LOT to do with the Great Recession. He made sure to keep everyone poor for the entire 8 years he was in office. Hey look what his Buddy Joe is currently doing 😂😂😂😂

[@joesmith3590]

The housing crash was caused by bad loans. Overbuilding was not a thing in many places and they still crashed. Few markets actually overbuilt. Loans are extremely high quality now.

[@clipartinc]

@@joesmith3590 yes, that was the reason in 2008. Today we have an affordability crisis. Home Values are already down year-over-year, it will continue.

[@joesmith3590]

Affordability is just a made up thing from crash bros. Look at Canada or Asia or Australia or California. It has no history of making a market go down. Homes are bought at the margin and as long as some people can afford it it is affordable.

[@tito20x]

Great video, my wife and I have been watching since mid last year when making our move from CA. We bought our house here in Las Vegas last December during the seasonal dip and people thought I was crazy, but the time was right for our situation. Our Realtor found us a distressed listing at under market price and official appraisal. Plus, with a VA loan we were able to get down to 6.3%, looking forward to doing an IRRRL refinance when rates eventually drop. If we listened to the crash bros, the people who listen to them, and waited we would have missed that opportunity. Especially now since prices have only gone up since then.

[@MrWaterbugdesign]

I think if something happens in other markets that cause even a small bump in people wanting to move out of those areas we'd see a big jump in values in LV and Phoenix. Lot of people in FL complaining about insurance, HOA messes and hurricanes. We get another bad storm season and people with money might start looking elsewhere. Lot of people in TX complaining about prop tax, hurricanes and electric grid. Lot of people in Seattle, SF, LA complaining about the homeless taking over, robbery plus all the standard complaining. Some in NYC aren't thrilled with robbery and the standard NYC stuff. Would not take very many people who are retiring in those cities to sell and move to LV and Phoenix to push values up. People in those other markets would likely be bringing a lot of cash from selling their place and that's when we really see jumps up. With local demand things tend to be calmer. If prices and/or rates go up a little buyers just stay where they are. Locals don't have as much cash or the need to move 5 miles. People from other cities get like on a mission and thing houses in LV and Phoenix are cheap compared to where they're coming from so they don't mind bidding up values. I'm not so sure 6% rates in early 2025 will create super high demand if mainly just locals. Talk about cycles all you want, but cycles aren't set in stone. New factors can create new cycles. We're seeing a big jump in duration of staying put.

[@seancuomo7762]

More people can't buy. Houses are too high. Demand is way down as far as I can see. Inflation is high if you are of medium income and housing should correct. If it doesn't, we are in trouble and will become like Canada, Europe. I hope people aren't good with this? "Doom and gloom" would be more house appreciation.

[@MattSauceda-mg5vv]

If housing market is good and there is nothing to worry about

[@TalkAboutHouses]

@@MattSauceda-mg5vv exactly. And we aren’t worried. If we thought there was a reason to worry we’d tell our investors to sell their rentals and make a couple million in commissions but we’d rather just be honest.

[@clipartinc]

Buckle up for the crash landing-affordability has left the building!

[@TalkAboutHouses]

@@clipartinc been waiting since 2013

[@clipartinc]

@@TalkAboutHouses Homes where affordable in 2019! You're truly out of touch!

[@robertpalos564]

Your comment is contradicting, is it crashing or is it going up bringing people out of the housing market? Lol

[@clipartinc]

@@robertpalos564 I'm not sure what you find hard to understand, but when things become unaffordable, the market crashes because people can't afford them.

[@midwestslim]

Cut defense spending

[@chrischoir3594]

cut welfare spending

[@midwestslim]

@@chrischoir3594 cut tax breaks (welfare) for the rich individuals and corporations?

[@pjsromproom9378]

It’s funny how they call it “defense” and everyone just repeats the lie. We have always been on the offensive, Hiroshima anyone???

[@midwestslim]

military spending then?

[@chrischoir3594]

@@midwestslim but they are still paying taxes. cut welfare and tax poor people they are a burden on society

[@KungPowEnterFist]

This video was very insightful in helping me gauge the level of hubris among Boomers. Yup, new all time high.

[@chrischoir3594]

we "had" inflation? um it is still going up.

[@TalkAboutHouses]

@@chrischoir3594 we’ve always had inflation. We had 9 and now we have 3 and declining.

[@chrischoir3594]

@@TalkAboutHouses so houses going up 10% in the last quarter mean 2% inflation? ok lol... I have a bridge in Brooklyn I am selling... PM me if interested

[@dr.dumddum904]

The US will want to lower Treasury interest rates in 2025 to forestall the economic collapse that's already in motion, but will the government be able to? HIGHER RATES may actually be coming in 2025 because of the US government's need to lure buyers into the Treasury market now that the Russians, Chinese and Japanese are exiting...

[@peterbedford2610]

Oh, that'll cause a crash for sure...😂

[@TalkAboutHouses]

@@peterbedford2610 maybe 2 crashes

[@j.l.salayao8055]

@@TalkAboutHouses Let's say 3 crashes as three time is a charm, what say you? -Cheers from Boulder City/ Lake Mead🤠🏜.

[@CatoQassem]

Supply has to go up Govt needs to help stimulate demand

[@MrWaterbugdesign]

Supply of what? People say houses, I say where? You can buy a decent house in Cairo IL right now for less than $9k and there are many empty houses owners don't even bother to list because no one wants to live there. The same is true for most of the US. Many declining towns and cities with almost free houses. Here in Phoenix we're building homes...1-2 hour drive from downtown. It's 2 entirely different markets, 2 different kinds of buyers. We can't increase the supply of land in the places where many people want to live. Gov stimulate house buyers and we're back to values jumping 20-30% a year. The only way the gov could increase supply of houses where people want to live is by creating a new city someplace with cheap land. Get business buy in so there are jobs. Several other countries have been doing this with some successful. But Americans hate gov so much I don't see it happening in the US. Our hatred of gov and people with different views is stopping us from doing anything hard.

[@CatoQassem]

@@MrWaterbugdesign Yes New Cities should be founded.

[@pjsromproom9378]

Oh God please no! Less government is the solution not more! Holy cow these people are sheep 😢😢😢😢😢

[@pjsromproom9378]

lol government did stimulate demand silly, it’s called open borders… the lack of knowledge and intelligence is truly disturbing

[@pjsromproom9378]

30 million new people, young working adults, mostly men, just showed up her in the past 3 years. Thats huggggeee demand that the government created