Mortgage Rates GOING BACK UP! 1 WEEK AFTER FED RATE CUT...
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- เผยแพร่เมื่อ 27 ก.ย. 2024
- Everybody thought that once the Fed started cutting interest rates that interest rates on car loans and mortgages would start dropping even further. That turned out to be absolutely wrong. In fact, the rates are now going up and still continuing to go up, which presents a large problem for the housing market and economy as a whole. Homebuyers are already not returning to the market when rates were going down, this will make the situation worse.
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I fought my property increase this year. I took pics of my 1990s bathroom, area with no porch etc. proved my home isn't worth what they say. 25k was knocked off. Why do we pay tax on unrealized gains why billionaires do not??????
unrealized gains tax on anyone is complete garbage and senseless, and so are these drastic property taxes!
Mine have gone up 25% and i live in a cheap state where real estate prices are not too absurd.
Give me a break! Now, you're going to side with the Federal Government to steal more money from the public. To think that only billionaires own stock is STUPID!
Tax on unrealized gains is a dangerous Marxist idea that would destroy the economy.
It's good you got that but they are still sticking it to you for 40% more than you should be paying and unless something changes it will go up from there even thou you get some relief one year they will either go bankrupt or they get it from the next guy.
Good for you. The City raises your value to get the higher tax to support another annual raise. 😃
it doesn't matter if rates are zero..home prices are way too high compared to people's income
and property taxes.
The reason home prices are so high is because rates were too low for too long. Rates need to go up.
Yes they are....
@@TheSuperdodgyinflation is a big part of the high cost....
@@andrewgleason586Inflation is a big part of the high cost.......
No, it's not. Inflation, in fact, hurts real estate. Real estate is expensive because of credit, especially 30-year loans. Home loans should never be more than 10 years top and should require 40% down. Anyway, it's too late for that.
Property tax, a tax on unrealized gain ‼️ also known as theft/RACKETEERING.
Exactly
If the government of the people for the people issued it's own currency vs borrowing from the privatized Fed, there would be no income tax.
@@ToddBessingler
Backed by what?
@@kilnmaster thats why i like Harris' unrealized tax plan. If the average person needs to pay unrealized gains taxes, then bill gates should have to do it too
@@grimaffiliations3671 bill gates being one of the biggest donors to the DNC wouldnt be paying those "taxes". None of those billionaires would. How many times have we heard fair share and the little guy only suffers more? The costs are just passed down to us anyway.
In America nobody owns their home. The government owns it.
Watch what happens if you don't pay your property tax. It happened to Happy Gilmore's grandma.
Spot on👌🏽
It happened to Happy as well 2022, the sickness shut down his golf shop
Exactly. A Joke!
Actually we the people are the GRANTOR of our mortgages (which are security INSTRUMENTS). Read your mortgage thoroughly.
We actually gave the banks our credit and they used it to create the money out of think air and loan it back to us at interest. Read Modern Money Mechanics 1990’s
Comme en Belgique
The insurance companies are robbing us blind. My homeowners insurance went from a little over $2,000/yr to $8,400/yr
Wow. Do you live on the coast.
What area is that?
Well, it's your fault Linda, 'cause you keep voting Democrat.
Florida has had a Republican majority for the last 20 years . Local government controls home owner insurance and property taxes Not Federal Government. 💙🇺🇸🗳️
@@mgtowcowboy8159. You call that an insult?
A retired couple, both teachers, bought a house in 1989 for $80k. It is now paid off. It's appraised value today is $900k. If they sell, their capital gain would be $820k. The capital gain tax basis on a primary residence is reduced by $500k so $320k is their net capital gain for tax purposes. Now they must pay US capital gain tax of 25% on $320k which is $80k. So this retired couple cannot afford to sell their house unless they are willing to buy another house that is worth $80k less than the house they now live in. The US tax code used to exempt the entire capital gain on a primary residence but the government changed it to $500k to punish the "rich". Because of inflation, this couple is now "rich".
I'm glad you made this video, I can recall when I was homeless and faced with many things in Life until $75,000 biweekly began rolling in and my Life went from A homeless nobody to a different person with good things to offer!!!!!!❤️
@AnthonyBen-tv1gc HOW !! I know it's possible , I would appreciate if you show me how to go about it .
As a beginner, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Mrs Mary Joanne Terry. for years and highly recommend her l focus on her. To be honest, I almost didn't buy the idea of letting someone handle growing my finances, but I'm so glad I did.....
MARY JOANNE TERRY?
I googled her, and yes, she has captured my heart. She just got a new client
Who could have predicted that overpriced property impacts buying more than minor changes to mortgage interest rates? 😁
All the housing prices are obscenely high especially in areas they have zero business being at those price points. We've got stupid at legendary levels all around.
I can tell you in my state, I think out of state people thought it was an untapped market not bothering to do 5 mins of a google search. Plains, MT for example, there's nothing there really. Hope you like driving to Costco once a month for a couple hours for the entire trip. I'm seeing homes over there for $700k......LOL What?!?!
Libby, MT is another. It's a superfund site and no one from here will live there. The cancer rates are still too high. I saw some very expensive nice homes over there that will need to find someone from out of state to purchase. They did the same in Billings, MT. That's where all our drug addicts and parolees go. It's the cesspool of the state. It was cheap for a reason. No one is going to pay $700k + to live around that trash. This is all due to no one thinking farther then 5 mins into the future. This is what massive levels of stupidity look like. Every state has been effected by this inbred level of stupidity.
Citiots ruin Montana culture thanks Hollywood
Most of MT is an outlier when it comes to real estate prices, mostly due to how much land is privately owned by ranches (including celebrities and very rich people), set aside for Indian reservations, and controlled by the government.
Et de CUPIDITÉ SURTOUT
This is bull shit so the cut the rates on my high yield savings but not mortgage rates instead it going up. It’s all a scam I tell you.
The only thing the FED has brainswashed folks into is that they control the short term rates. They do not. They just follow the 2 year yield on a lag. Which is why they are always late... and they certainly don't control the long end either ... and who the hell is going to lend the USA govt money when the more they print and the more they spend the more risk there is of default? They won't do it at 5% but they will do it at 15% or 18% like they did in the 80s. And the last time we went over 5% on the 10 year the market tanked. Wait until it goes up and keeps going up. The bond market is everything and almost no one know anything about it. To learn it is like watching paint dry. I worry about people... millions of people, I don't sleep well anymore.
On the plus side, a lot of people who escaped the Northeast and relocated to Florida over the past few years, artificially raising the cost of living here and driving rents to almost double in less than two years, I hear a lot of them are running back north and selling cheap after yesterday.
Hope all my Florida brothers and sisters made it through safe yesterday.
Cleaning up and drying out here in Tarpon!
🇺🇸🐊😎🐊🇺🇸
The number of homes for sale in FL before Helene was more than WA, OR, ID, NV and CALIFORNIA COMBINED !!
@@nicke.3011 I wonder if most of those for-sale props will be delisted after Helena. Can't sell a sunken house.
The couple's situation as described by Michael: I'm trying to understand why a house they bought NEW a few years ago NEEDS a new shower for $18K and a new water heater...? Doesn't add up...
Nothing this guy talks about adds up. He's a fear mongering hypocrite that bought a Florida condo in 2022 while he was making these exact same vidoes.
I wanna say I heard that DB Horton houses were problematic in less than 6 months.
I believe he meant it was new to "them", not a new house.
I'm suspecting that their water has a lot of iron or lime which can shorten the lifespan of water heaters, clog up showers. Especially if they didn't have a water conditioner or it wasn't operating properly.
Because most contractors are hustlers. Additionally, there is the law of entropy. Everything is constantly moving from order to disorder. This means that your home is constantly slowly falling apart. Leave a home Unmaintainenced for 5 years and it will be unlivable even if no one lived in it during that time. A 1500-2000sqft home will cost the owner an average of 5-6k per year in maintenance costs to property maintain. Owning a home is a liability not an asset
Dreams, ambitions, opportunities, and aspirations. Holistically
ALL GONE!
We have been unburdened by what has been…
Think about it ..... the moon .....
Stagflation is the worse case. It's happening!
It's grinding to a crawl,halt...
Excellent point. Prop 13 was great for me. Property taxes are around 3K on a 7 figure house. It just can't rise that much.
Never trust lawyers, insurance agents, used car dealers, and politicians
I could add a lot more to that list, starting with our entire financial sector and all Wall Street listed entities majority controlled by institutional finance…which is all of them!
My Mantra after living a long time in this country is trust no one. Honesty and integrity in this country it's almost nowhere to be found . And when you look at someone who is running for president who's a convicted felon a serial rapist and a draft Dodger is it any wonder why there is no civility left in this country. Thanks to January 6th the United States is a third world country AKA Banana Republic. Thanks Donnie
If the Longshoreman strike on the east coast happens next week, the home repair (appliances and supplies) prices are going to go through the roof if you can even get the repairs done.
it's gonna happen ... how long it goes is the question. 3 to 5 billion a day.
Your property taxes over there are awful - as an Australian I'm offended on your behalf. My house in Sydney is worth about $2.4 million in local currency, and my council rates (for rubbish collection, road repairs, libraries, community center and courtesy buses for the old folks, etc) are $2100 AUD per year. That's as close as we get to property tax. We don't have HOA here, with VERY rare exceptions, and what's up with your car insurance too? My wife's car ($40K AUD) costs $800 AUD per year for full insurance ($67 per month). I think you're getting ripped off over there, but what do I know? Also, capital gains tax on your primary residence here is zero - nil, nothing. I can't believe you have to pay tax on that - is that all across the US, or state-by-state?
it's the result of decades of "bread and circus". most people are too numb even to realize it, even less act on it.
also: poisonous drugs and food to lower IQ
plus endless wars
And, at the end of it all, you have no inheritance tax.
@@well-blazeredman6187 You are correct - and our government at the end of the day is no more broke than yours. Where does all the money go?
Inheritence tax is a different matter altogether.
Indeed we are mate!!!
If big companies are still closing stores, restaurants and also laying off employees in mass, what makes you think that things are going to change within the next six months?
Logic has entered the chat.
productivity is very high right now, so we're able to grow a lot without employing as many people. Current gdp predictions are at 3.2%
Oil companies still get tax breaks and subsidies.
I live where Citigroup and Mastercard get tax breaks! Talk about an upside down world.🙃
Banks create money out of thin air! And they can do it over and over via fractional reserve lending and rehypothecation. When they finally manage to fail anyway, taxpayer dollars bail them out.
Henry Ford ASL0 gave all his employees a $5.00 RAISE...so they could afford...to buy his new cars. 😉
My recollection is that he paid his employees $5 per day, which was HIGH at the time...
@@treesnmoguls globally.
Don’t worry guys the IRS has endorsed Harris. I’m sure we will all be fine.
And they are carrying pew pews now too! For home 'visits'!
Is this a joke?
Better than endorsing Trump
This isn’t a joke. The Democrats have become the party of censorship, tyranny, oppression and corruption.
@@JhonCarolannope
I you need any financial help . You have NO business buying a house 🏡 .......................................
The "sad" part about Proposition 13 is that California POLITICIANS fought it every step of the way. It was the PEOPLE of California who placed the proposition
on the ballot. And even today, there are organizations that must constantly watch and push back against POLITICIANS, who continuously try to find ways around
Prop 13... or attempt to eliminate it altogether.
California POLITICIANS see Prop 13 as a barrier to the "gravy train" of obscenely exploding property
taxes and revenues that they enjoy squandering on themselves and all their expensive and pet projects.
Currency 💵 bubbles 🫧 implosion ! Look 👀 at the Japanese 🇯🇵 Yen 💴, the first G7 currency 💵 to collapse ! Sigh 😮💨
“By 2030 you will own nothing and be happy” - WEF
Exactly! These idiots don’t get it, even though it was spelled out for them
That's ideological corruption, assets are a pool of stuff available for sale, who is competing with you? Is it really Wall Street?? nooo I heat to break it to you but it is not, It's your next door neighbor. It's average American, who is out there buying homes, and competing and raising prices on you, people working in Tech an Finance making $200,000 a year as a working couple are the ones easily raising prices. Money from around the globe is invested in to Wall Street which funds companies like Microsoft and Apple and they hire Americans pay them HUGE salary and their workers buy all the homes. Simple really. How many Microsoft workers own 2+ homes maybe 3+, they list them for rent, or AirBNB or vacation homes for themselves. It's just good old fashioned inequality, Tech/Finance workers make so much more than everyone else, just need to find a way to join them.
2025
The pope’s agenda.
@@JB-ku7kvyes, this Bordenaro character keeps quoting official government sources to his clueless audience and talks about how the Fed says this and that. Sometimes I think he's just here to make money through TH-cam which seems to be one of if not his main source of income. I think I've only heard him mention the "you'll own nothing and be happy" saying once. Surely these people have heard of the World Economic Forum. Why don't they just come out and educate their audience? I'll tell you why. Because they'll never risk TH-cam censorship on their sources of income. I remember him in one of his videos smirking and shaking his head at the 'silliness' of people who had to risk not paying for car insurance just to put food at the table in these hard economic times. Never forget that your listening to a literal salesman in this guy. Don't let your admiration of him & what he does make you forget that fact.
If you want to be a home owner you need to either make a lot of money so you can afford the repairs or be skilled at fixing your own stuff and have friends and family that can help..
a new shower at $18,000 that's crazy
I suspect, the couple in Michael’s example do not know anything about housing, construction, or real estate. They never considered what they were really getting into, because no one had been owners. I see it all the time, people just don’t think outside the box, in housing, they believe what they “see”. Being the daughter of a builder/developer/general contractor, I see every component as the guts of 4 systems that create shelter, with plumbing and electricity in the walls, a foundation and shell. Everything else is “bling”. HGTV is “bling” dished out in 30 minute and 1 hour segments. And then there’s the neighbor factors. There is nothing glitzy at all about homeownership, no matter how expensive of a mansion or shack it is, home ownership is a lot like raising children, only the house is just getting old like taking care of your elderly parents! Imagine living in a 300 or 400 year old structure in Europe! Nostalgic nightmare!😂
@@vickijohnson9367 I agree, they were unfamiliar with how everything works and the contractors saw this also.
@@vickijohnson9367 Neighbors in the boonies can be very big problems.
Stagflation, congratulation america 🇺🇸! You got stagflation!
Just vote for Harris to get that $25k tax deduction so home prices can increase another $25k🤣🤣🤣
Or vote trump and more tax cuts for rich and tariffs for middle class. National debt went up under donnie not counting covid aftermath. How much money did you send to Tammy Faye?
Harris? Tax Deduction? you are getting highhhhhhhhhhhhhhhhhhhhhh
@@Gufenaugh taxes were cut for everyone. Those at lower ends of income saw a larger percentage cut. Cute talking point that is all refuted by reality, facts and data.
I dislike 25k too but Iit is indeed tax cut and likely be blocked by congress. The sellers who think they will get the adventage will disappoint.
@@FrankS111you’re 100% wrong.
As far as the Auto industry goes.. the first automobiles were expensive and made for the rich custom.. to the honor goes Ransom Eli olds for being the first man to mass-produce automobiles in the United States of America.. the curved dash olds was 650.00. . To the true honor for who put America on wheels goes to Henry Ford. He made automobiles cheap enough for the common Man and his model t was as low as $260 at one time and it was quite a bit more car than the curved dash olds... Ransom Eli olds what's the first man to mass-produce the automobile in the United States and he was the first man to build a factory especially for manufacturing automobiles and he did this in 1901 in Detroit Michigan..
Lots of families are going to continue living together, even after the kids are of age to move out. It takes a village!
No way.
I don't read through the comments and thought you were exaggerating the push back. I was wrong 😂 idk why people get so twisted about your analysis but believe everything they see on the news. Its bananas 🍌🤣
Let's say the interest rate has gone back to where it was a year ago, but prices have gone up over the past year, and insurance and HOA fees...have also increased. We've only just returned to where we were four months ago, and I don't think this will bring new buyers into the market. Even if it does, it will be fake and very short-lived. What we're seeing now is that sellers are becoming very greedy and listing their homes, but still at high prices. Very soon, they will realize that there are no buyers.
Rates were much higher a year ago. The 10 year briefly hit 5% last October and is now down 125 basis points as of today.
Sellers are not “greedy”…they sell to buyers at the highest price possible OR their house just dont sell…is that simple…
Are buyers “cheap” because they want to pay less? No…they just want the lowest price possible..
It’s just business!
@@konnick5262 Well it depends on situations in life if someone has to move for work or university or family or medical issues then people move. It is what it is, they just have to buy in a price that works for them. The real story is to buy what you can afford but in the USA it is very strict, you have to have ALL debt including the house you buy and any credit card debt, everything has to be under 50% of income per month and that also includes Taxes and Insurance, so it is very strict. This makes the US housing market really strong becasue the people that buy homes are held to a very high standard not even in Europe do you see such strong limits on what a person can borrow. This is the outcome of 2008, Americans were punished by very hard limits on borrowing.
im a seller, selling a 2 year old home. (narket called for 400k a few months ago, i missed the boat and dropped to 320k. buyers want it for 250k. i need the momey to buy a SMALLER older house in a small town (my current house is in a great area of the city) and the house in the small town is 320k... if i drop to 250k how will i afford the "new" smaller, older house in a less desirable area.
basically the costs arnt going up at all, the dollar is becoming weaker and what was 250k 3 years ago, requires 370k for the same exact product. so sellers arn't being greedy the dollars are just worth much less. is mcdonalds greedy? it takes twice the $$ for the same food. mcdonalds sucks but thats the reality, cash is trash, get out of fiat garbage money and buy gold.
You said it Michael. Predicted the outcome to the letter. Proof is in all the previous videos. Bravo 👏🏿
Based Michael B. My favorite yapper on TH-cam.
Hahahahahaha you all voted for this in 2020 and asking for more in November. Many of you deserve this 🤣🤣🤣
Was rigged anyway
Can’t blame all the dead people who managed to vote
@@Spaceguy every state has its own election process so that is 50 different systems each totally independent, can you really corrupt 50 different elections? I kind of doubt it. I did vote for Trump in 2020 but I saw it was a tight race and just a loss. Trump made many errors in dealing with COVID so I can see why people bailed. Trump should have done a better job not like Biden was any better but if Trump did a good job he would have won in a landslide regardless of any election issues but clearly he didn't. Ronald Regan won with like 80% of the vote in 1980s, that is total domination, 80%!!!!! If Trump really did a great job he too would have gotten total victory but he clearly did not do good enough of a job. It is what it is
The one you are saying that lost in 2020 is the one most responsible for this particular inflation! $5T spent in the convid scare in 2020 by the golden one. You people just need to wake up, he is NOT on your side!
I left California years ago used to be a beautiful state something about the people there now just love voting for the same policies and more taxes I don't get it. Maybe someday there will be enough pressure on the citizens of that state to change.
The rent is too damn high!
Sometimes you just can't fight reversion to the mean. Or maybe median. People are spoiled by 10 or 20 years of super low rates and it has disrupted the market.
"The average 30-year mortgage rate in the United States from 1971 to 2024 was 7.72%."
Minimum Mortgage Rate Median Mortgage Rate
1971-1979 7.23% 8.89%
1980-1989 9.03% 12.82%
1990-1999 6.49% 7.88%
2000-2009 4.71% 6.18%
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
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
That’s because the bond market thinks Jay Powell is a clown.
Bingo
You all act like Powell has any power. He don't have crap. He follows the 2 year yield but on a lag. That is why they are always late. We really need to blame Congress and Yellen to start. There are more of course but I am too tired trying to give my fellow Americans a short history on how we got here. Hell I can't even get someone to give me the correct answer on how money comes into existance (printing) they all say the FED print is it.... which of course is not only wrong but illegal. And if they can't the very basis of what the whole system is built off of what else have they gotten wrong? Which means we are doomed.
The only way people will buy homes is if they drop prices ALOT because the gig is up…. Property taxes and insurance, maintenance costs…. The general public is aware and is actively boycotting the high prices of homes. I can buy a home now but I refuse. I save 1000+ dollars a month in cash or buy gold, silver or T bills. I live in a studio beneath my means. Why would I buy some big house that’s a money pit knowing that on average 2.6 million older Americans will pass away each year moving forward and many more will need to be placed in care. Schools are closing, daycares, children’s entertainment parks because people aren’t having children. Time and demographics are on my side. Just because masses of people foolishly bought in at these prices doesn’t mean I’m going to pay the price for that. Just look at Detroit, with demographic decline houses will sell for 10k or less 10-15 years down the road. I am having a blast with no responsibilities of home ownership and having the money to buy whatever I want. Time is on my side and I can wait.
Well said. (coming from a millenial home owner who is currently selling). The trend is on your side. Living in a home (even with a low interest rate) isn't all sunshine and rainbows when your property tax, mainteance, and other bills are shooting up too. Better off being mobile and finding bargains in the rental market. The mere fact that the average person has become obsessed with inflation, makes me feel more like a contrarian and believe the economy is in way worse shape, especially the labor market. Very excited to be in cash here soon
False
detroit is making a comeback
Drop all United states property tax. Every state. Compensate with a 75% reduction in Govt and Military spending. Close all overseas bases and immediately stop all funding to Israel and Ukraine.
Audit then END the Fed.
I would start with that. Vote for me...😎
Thats the whole problem is government spending the worst it's ever been. 2 wars, paying illegal aliens, and the same ole welfare system.
75% reduction in gov & military spending = no SS, Medicare, and China becomes the dominant military superpower...yikes
WELL F%CKING SAID! EXCELLENT!
@@kilnmastertry about 8 wars ! You left out China,Twain , Japan,North Korea, Philippines on and on
Can one of the forever renters that listens to this man's daily rambling drivel explain what actual value you are getting from this insipid content? I am genuinely curious.
Lol I love it when somebody avoids TH-cam filters with SAT words to roast somebody routinely putting out 🤡 content.
This dude said insipid 😂 what a 🤡
@@johnlockhart1813 You're clearly one of his Mikey's forever renter subscribers. Why don't you answer my question? Or are you too busy googling the definitions of the words in my post still ?
My US Government is screwing me out of home - ownership! I'm getting tired of my US Governmenmt manipulating the housing market!
The first house he showed was worth $350,000 tops. Yeah we got imbeciles playing 2 million for it. 😂😂🤷🏾♂️
Inflation is a disaster for everything, relentless....6.98 30 year fixed in New Hampshire,very expensive...
Inflation doesn't bother the greedy billionaires and there are too many of them.
NH property prices are obscene !
Annual est. $700 property tax on that Prop 13 CA house for sale @ 1.5M.... paid off, non-escrowed, senior disabled veteran homeowner? .....what other exemptions am I missing, folks? Fill me in, please. Thnx.
That owner has owned that house for 30+ years, is my guess.
Prop13 is based on 1% of ORIGINAL purchase price, plus bonds, and only allowed to increase 2% a year going forwards.
Also a minor 7k value reduction for owner occupied.
This has been a HUGE difference in the ability to stay in your home once it's paid off no matter what happens to your income above a small base cashflow needed.
What kind of water softener costs over $8.000 ? I bought a name brand unit for $650.00 and a water heater and shower repair all at a cost of $30 K . Is this crap lined with gold ?
Seems way out of line or is that what things cost in California?
23:30 Government (and private) subsidies on expensive purchases. What could go wrong? 2008
So the rate cute will do nothing, how ignorant is this all going to get
To be fair, mortgage rates dropped from the low 7s to the low 6s over the 2 months leading to the Fed's rate cut. So they had already come down in anticipation of that cut. Moving a few basis points since in either direction should not be a surprise... at all.
Bingo. This guy doesn't even know they were priced in
Yes, there is that.
What's happening in China is extremely worse than what we are anticipating. In fact I'm more worried about the effect's of that situation.
Tons of homes just went on the market in my area.
Everyones trying to cash out.
@@jefflewis4278 Yup!
The time to sell was 2021. They're going to be disappointed.
Where do you live, in general?
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
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Jessica Lee Horst" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
I LIVE OUT HERE ON THE OLYMPIC PENINSULA IN WA (PORT ANGELES) STATE AND I AM NOW SEEING FOR THE FIRST TIME IN A WHILE THE PRICE OF HOUSES DROP 10000 TO 50000. IF IT WAS ME I WOULDN'T BE BUYING A HOUSE RIGHT NOW UNLESS YOU HAVE COMPELLING ISSUES.
Who wants to live on a fault line. We moved from Port Angela's because there is only one way to get out of this city.
Interest rates tick up a bit on one day, michael makes a doomsday video. Man never misses 😂
🎯
This was immediately after 50 bp cut in the fed rate. That is what he points out. Your disinformation is not wanted.
Gee who didn’t see this coming 🙄
In CA, the base tax is 1% of the purchase price, with increases capped at 2%/yr, except that they can "bank" unassessed increases during down years and tack them on later when values recover. The legislators get around the 1% base tax by getting voters to vote yes on numerous tax and bond measures, which get tacked onto the 1% property base tax. These measures pass because all voters, including those who don't own property, get to vote on them. Renters vote yes because it sounds nice to fund this and that service or project, thinking it won't cost them anything, not realizing it is going to cause their rent to go up. The 1% base tax on my house in CA was $5500, but with the added voter approved bond meaures, my tax was nearly $7K/yr. There is no 2% cap on these tacked on bond taxes, and no homestead exemption. There is an exemption of 7K off of the assessed value for owner occupants, which is nothing. Californians need to vote NO on all tax and bond measures until CA stops wasting their tax dollars. Since there is NO CAP on these bond measure taxes, you can still get taxed out of your house. CA needs to stop the waste. The speed train to nowhere is just one blatent example of the waste in CA.
In my greater SFBA metro zone County the residents have voted DOWN nearly every single spending bond, from schools to infrastructure, for the last 4 years- the singular exception was an initial fire depts bong and the one to expand and include paramedics and rigs vs pay outside contractors tp provide the services.
They also voted OUT the old Sheriff for a dept veteran running with old school LE views- and voted DOWN the attempt to fund more to local govt expansion builds vs renovate what they have.
And this is a Blue bubble area.
But then again we may be one of the last majority Dem Counties without their having total control over the ballot tabulating process....
Sounds like those people over pay for everything and learned the hard way.
8k for a water softener
18k for a shower???
WTF
Gullible is written on the ceiling
I was thinking this! I live in the uk and £1500 gets you a really decent high end softener for a large property. Thats $2000. Sounds like these people are just mugs.
The mortgage rates are influenced by the 10year treasury yields.
Exactly and the 10 year yield has broken out of a 40 year down trend. And folks have no idea what that means.
Just don't get divorced especially in California!
Don't get married there either!! Lol
Here is a noble idea, pick the right spouse and don't worry about any of that.
They can't lower the rates ...what don't people understand... The national debt is out of control!
blame that on the biden and harris , you would swear that lady slur her words. something wrong with her .
the way she acts.
What you mean is that the FED has no control of any rates other than the FED Funds rate (the over night rate that banks charge each other) and the bond market is about to get really pissed off. No one is going to lend the US Govt money when we are on the cusp of insolvency or driving the dollar to zero. But they will lend to the US Govt at high yields say 15 or 18 percent ... just like they did in the 80s. This will make mortgage prices skyrocket and cause the housing market to crash. Many market crashes have come when there are no buyers left.
@@bpb5541 the US doesn't need anyone "lending" it money. It makes the money
High interest rates make servicing the 35 Trillion dollar national debt much more expensive.
Wait and see what happens in California when the big one hits I'm sure probably 95% or more do not have earthquake insurance
1 No we don't- it is worthless and also extremely overpriced premiums for virtually no coverage.
2 the big one is at least half fearmongering- and I write that as a multi gen resident of the San Andreas zone- and half unlikely to strike the northern third of the State due to the nature of our plates and movement patterns.
Honestly, the do good but clueless of consequences votes and regs that have built up to cause our massive wildfires burning into heavy population zones are a much more real danger
I don't and I live on the San Andreas. Ridiculous waste of money that doesn't cover jack. I'm happier to just build a new one rather than get ripped off for 30 years
No one talks about sweat equity. I bought my project house in 1996 for 88,000. It was a dump. Now with inflation and the house being livable, it is worth 400,000k. That is stupid money for a home built in 1960. But it will never be worth 88,000 again.
88k in 1996 is worth a lot more in 2024 thanks to inflation. Especially real inflation, not the government figures that went off the rails in the 80s and later.
Not opposite of what I’ve said. Yield is uninverting. When the fed actually cuts the banks have already hedged. It’s common it drifts a little higher after. I expect it to stay here for the next 6-8 months.
People just don’t understand the market and how it works. It’s not that surprising
The market is still priced for 3%.
So, it is a good thing that newcomers should massively subsidize their neighbors who have been owners for a long time? Who wants to pay their neighbor's property taxes?
Yes.
Because the alternative is the predatory govts forcing many MANY homes and farms to be sold to anyone at all at terrible prices with jacked costs to own (mostly being the corp investor class and foreign owners), like what has happened in multiple other States.
You trade the demand market prices for stability in longterm ownership base.
But many new regs across Counties are making buy and AirBnB etc not only blocked but extremely unprofitable now. And those are getting offloaded, adding real viable volume to the listings.
Problem is still as long as buyers insist on moving here and paying premiums for location many areas already built up will not get lower prices.
Not only are seniors being priced out of their properties when the tax is reassessed, but the next generation is affected too. Let’s say you inherit the house where you spent your whole life. You might want to stay, but you can’t because you don’t have the money to pay the tax due to the transfer of ownership. I believe that, unlike many things happening in California, these propositions are good, and I’d like to see them in other states.
Then you get the protected class of home owners voting YES on billions of dollars in bonds for all sorts of things because someone else has to pay for it. Also the long term property owners pay far less property taxes on their 5 million dollar home (palatial estate) than newcomers do on a 700k home (very small condo.) The intended result of protecting grandparents from being run out of their homes has unintended consequences.
Heck, my neighborhood looks better than that one in San Rafael and I bought my house in Wisconsin last year for 300k. Underground electric lines FTW. No one steals my packages. A break-in would make front page news, if one happened. Neighbors look out for one another. Folks wave and say hi. Kids play in their yards.
Yeah, winters here are rough, and we don't have mountains or seashore. But you can't eat scenery.
MY property taxes suck, kinda.... but I pay about an eighth of what that listing's owner pays. Still, without Proposition 13 (thanks Howard Jarvis), my relatives still living in CA would have been homeless years ago. So there's that.
Glad that some of my relations who will not/cannot move, can at least will their property to their kids to avoid reassessment.
The tax in Ca is actually 1% statewide plus any local bond issues and special local district assessments. Our area that comes out to about 1.3% Additionally tract homes built after 1983 in many areas have a Mello-Roos or CSD tax, and to get around prop 13 they are based on square footage. New homes in our area have an additional $1.30 per sq foot CSD tax per year… in a market where homes cost a million for a basic tract home. Retirees who bought back in the 70’s when homes were 80k have a vastly different tax bill to their young family next door who had to pay a million dollars.
Yes, politically CA was a vastly different place in 1978…
If you encourage more buyers but do not increase supply. So mortgage rates are going up. If they go down then more buyers force prices to rise faster. If you give first time home buyers $50k then you increase buyers and home prices go up.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
If anything, the situation will worsen. Affordable housing will soon become unaffordable. Therefore, I advise taking action now, as today's prices will seem low compared to the future. Until the Fed takes more stringent measures, I anticipate widespread hysteria due to rampant inflation. You can't remove the band-aid halfway.
If anything, the situation will worsen. Affordable housing will soon become unaffordable. Therefore, I advise taking action now, as today's prices will seem low compared to the future. Until the Fed takes more stringent measures, I anticipate widespread hysteria due to rampant inflation. You can't remove the band-aid halfway.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
Finding financial advisors like Sophia Maurine Lanting 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.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
🌴🌴🌴. I truly believe that we will get to triple digits before it gets better.
I only know this is because I’ve been following the “Economic Ninja” for several years now. He’s a friend and a great person.
Thank you Mike, Carlos
Let’s go Brandon. 🇺🇸
There is no one on the face of the earth that stops what is coming next.
Boo hoo sucks for them they should of never bought
WE are living the GFC 2.0 on steroids. But that is only one issue. I am tracking 16.
My parents benefited from Prop 13.
Do they vote to approve every bond issue that comes along? Seems like the majority does. Then someone else gets to pay for it. Moral hazard.
Ok, Ok, so you have a property tax freeze or homestead or whatever your state calls it. How fair is it to the people who buy a house and then have to pay the lions share of taxes for the same services you, the tax freeze people, use? Doesn't sound that fair to me.
All these properties with high rent are going to be sitting empty for a while and the owners are going to pay out-of-pocket for property taxes and insurance.
Greed is their dem_ise.
I lost half of everything due to my divorce in California. I’m so upset that I’m never getting married again 😮😮😮
Trump is selling watches for $100,000. The economy can't be too bad.
It’s not too bad, for the ultra wealthy. That is why you nor I am purchasing $100,00.00 watches. That’s equiv to $10 for the ultra wealthy.
Your joke was not lost on me. Nice one.
People will never sell their homes and just do a reverse mortgage and head into assisted dying facilities. 😢😢😢😢
So wild you have a multimillion property you might have to come up with cash to pay those capital gains you haven’t got …
The govt needs to sell treasuries to finance deficit spending and debt. People and nations want higher rates due to risk.
Don't ever (sell your house in California) and go against the family, Michael
Rates need to remain higher to attract foreign bond buyers, to finance the out of control spending
The interesting thing is the lenders I know personally say that business is good a lot of things don’t make sense to me seems to me the economy should be failing but seems to chug right along I don’t want to fail but as a person who just looks at Numbers and things just don’t make sense
Try using punctuation.
Of course they say business is good because they’ll give a $700,000 mortgage to someone making $18 an hour at Walmart.
The 10 year yield went down ahead of the Fed rate cut announcement, in anticipation of that move. This is a buy-the-rumor-sell-the-news kind of situation, where bond traders would be taking profits in the near term. Yields never go up or down in a straight line - there are surges and pullbacks. Looking at the longer term MA's , the trend is still down, and it's reasonable to expect another turn to the downside after profit-taking ebbs and buying appetite kicks back in. Looking back to the 2008 GFC, mortgage rates were going down all the while that the housing market was crashing and the global financial system was on the brink of imploding.
The greatest change since 2006-8 is the buyer market.
And how much in existing bonds are foreign owned.
When you look at the divestment and non-interest charts for then to current you see a dramatic shift to less exposure to our markets collapsing and no takers for the new debts.
@@seaneendelong8065 the US government will need to shift to relying more on US buyers. It can incentivize this with favorable taxation policy on treasuries, such as exempting from income tax like municipal bonds.
No I disagree with you. Pull up a weekly chart of the 10 year yield. It has broken out of a 40 year down trend and is now trending up. That little down move was just a pull back in the long term rate increase. I think we go over 15 ... maybe even 18 percent on the 10 year. I mean who the hell is going to lend the US Govt money when either they hyperinflate the dollar to zero or send us into a deflationary depression because the debts got too high? Either way leads to a depression. There is no good way out of this now.
And the stock market keeps chugging along...
Hope everyone in Florida and the southeast is safe.
I Found a 3 inch piece of roof shingle in my Jupiter, FL yard this morning. NC lost I-40 into a river. Trees down all the way to Indianapolis.
This country will continue to dismember itself
Why would you be happy that interest rates are going up? Just to be right? Not cool.
Don't over think it. It was sarcasm.
It's to prove that the Fed doesn't have a clue, and also don't believe what the media and politicians are spewing.
It’s no longer a surprise duh, it will never be the same
Mind was conventional, 5,8 % 30 year fix, Well Fargo, score 820 .( second home).9/26/24
Very nice! Keep up the good work
Congrats, not too bad! I’m at this too. I’m under contract hoping to close 10/14.
@@ScottWarner86good for you as well , I love this new place are would not have bought. I got mind 40000 under what they were really wanting.Las Vegas.
Double digit mortgage rates coming to a city near you ‼️
One day at a time.
Rent the boat, or whatever junk you think you want. FOR ONE DAY. And have fun.
Keep your house.
Redefine "Own nothing and be happy (sic)". Let's take it back. We can while there's time.
rent the boat😂 do I have pay property tax
I think that it was an obvious mistake that the Fed's first rate cut was half percent rather than quarter percent. I think that this move reduced their credibility. Either they waited too long to lower rates or they are trying to juice the economy before the election. Frankly, I think it's possible that all residential real estate in the US, Europe, and China is wildly overvalued. Could continuing rises in mortgage rates show that mortgage lenders think that the value of real estate on which they grant mortgages could possibly drop and they want the higher rate to compensate them for that risk?
I don't think it matters anymore. I think we are getting close to a liquidity, collateral, and credit (debt) crisis all at the same time. It will rival the Great Depression.
Have fixed interest rate on house here -no problem
Why won't everyone put their differences aside and we the people unite. I said it yrs ago that the people should demand no payroll taxes, no property taxes and no death taxes. Each state could adjust their sales tax accordingly.
That only punishes poor people more.
every state needs prop 13. trust me, we need it everywhere and citizens needs this.
You don't need it in a place with no growth.
@@hvaball150 why not? it does no harm. It protects the current citizens and businesses. They know what their taxes will be years to come. Stability is the corner stone of growth.
Other people and I.... Not other people and me