The problem is that mortgage rates don’t just follow Fed rate cuts directly. They’re influenced by other factors like bond yields, market demand, and even lender margins. Right now, inflation and market volatility are playing a huge role in keeping those rates higher than we’d expect.
That makes sense, but it’s still stressful for people trying to buy a home or refinance. I feel like the financial system is just so unpredictable lately. It’s hard to know where to put your money.
You’re not alone. It’s frustrating. The Fed sets short-term rates, but mortgage rates are influenced more by long-term Treasury yields, which don’t always move in sync. Lenders also factor in risk, inflation, and market demand, which are high right now.
That’s why I turned to a CFA like Joseph Nick Cahill. He’s helped me rebalance my portfolio and minimize risks, even with today’s volatile rates. He offers free consultations, so it’s worth reaching out to see how he can help you position yourself for better outcomes
Exactly. Joseph Nick Cahill helped me avoid some common traps-like sitting on too much cash, chasing risky stocks, or not diversifying. He has years of experience helping people grow their portfolios safely, both for long-term and short-term goals. Give him a shot; he’s really made a difference for me.
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!!!
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 😂😂😂
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.
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.
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😅
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.
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.
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.
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.
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.
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.
I have tried investing in the cryptocurrency market several times, but was always put off by the fluctuations in the value of the stocks. I would love to hear your advice based on how you did it, as I am ready to embark on the path of passive income.
My certified financial analyst is Alfred Thomas, a recognized figure in his area of work. I recommend doing more research on their credentials. He has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on. what's the best way to grow my income.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with “Laurel Ann Watkins” for years and highly recommend her. Look her up to see if she meets your criteria.
Thanks for sharing. I searched her full name and found her website instantly. After reviewing her credentials and conducting due diligence, I reached out to her.
First mortgages with rates of 8 to 9% and 9% to 10% were common when I bought my first house to live in, which was in Miami in the early 1990s. People will have to come to terms with the fact that we may never get back to 3%. Home prices will have to drop if sellers are forced to sell, and appraisals will drop as a result. I'm very certain that I'm not the only one thinking this.
In fact, it will only grow worse. Affordable homes will soon become unaffordable. Therefore, if anyone wants to do something, I suggest doing it right away because tomorrow's costs will appear to be lower than they are today. I believe that frenzy brought on by excessive inflation will persist until the Fed tightens its regulations considerably further. The bandage cannot be torn off in the middle.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
If sellers must sell, home prices will have to decline, and lower evaluations will follow. However, people will have to accept ''reality'' that we won't ever return to 3%. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.
Straight up, advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio, since the 2020 stock market crash to date, resulting to a 7 figure amount after 100s of thousands invested. Nothing beats expertise!
@@M.Herlihy thats major! mind if I look up the professional guiding you please? I've worked in real estate for over 10 years and neglected a major stock portfolio, however I need a different plan now
Karen Lynne Chess is the licensed advisor I use. Just google the name and you’d find necessary details. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
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.
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.
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.
Some of these techbros and super rich are contributors as well. My aunt continuously brags about her friend's son who supposedly works in SpaceX and owns 10 homes, blissfully unaware of the fact that my aunt herself will never own a home because of these greedy assholes.
@@legendary_soup4454 Considering how Atlanta or Wake County, NC look like - urban sprawl - NIMBYism is completely justified. How many forests are they going to clearcut? How many people can you pack into one space? How inflated can the housing prices be?
The current market/economy is unnecessarily tougher for bloomers/senior citizens. Over the years I was just buying and holding onto potential assets, which doesn’t seem applicable to the current rollercoaster market trend, plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Before you start investing, it's crucial to understand the basics of investing in different assets and their associated risks. Are you investing for retirement, buying a home, or building an emergency fund? Your goals will help shape your investment strategy.
Knowing today's market culture,the challenge is to recognize when to purchase or sell stocks, which is pretty simple for experts. Through portfolio restructuring and diversification with good ETFs, S&P 500 and growth stocks, I've turned my portfolio around from $180k to over $440k in a year. My advisor chooses entry and exit orders.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Sherry Ann Klein has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you need an excellent collaboration.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
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.
I've stuck with SOPHIE LYNN CARRABUS before the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
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.
The Federal Reserve halted rate hikes, which is a very bold move by the Fed to stimulate economic expansion, ease financial conditions and address inflation concerns with potential benefits for consumers. The major concern for me and I believe every other investor is on opportunities present in the market to enhance overall portfolio performance
Not offering any particular advice, but I can assure you that most stocks still have growth potential. but in order to execute such effective transactions, you must be a pro or work with an investment advisor
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 15% short of my $1 million retirement goal thanks to my subsequent investments.
Sharon Ann Meny is the licensed advisor I use. Just search the name. You’d find her webpage and necessary details to work with to set up an appointment.
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'......
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..😅
Bought my home in 2018 for $750k and refinanced in 2021 at 2.75%. Now I rent it out for $5k/month and was able to buy a new home this year. Not planning to ever sell and pay a realtor 5%…that’s crazy.
@@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.
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.
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.
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
‘’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..
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.
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?
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.
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.
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?
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
As someone who is now looking for our first home. The market has defiantly flipped. Seeing houses on the market for months. But yes two houses yesterday we looked at were owned by a company.
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
If they invested the difference into the S&P 500 they would probably be better off today. And they would have had more flexibility to move cities for pay increases. Renting is generally the better option for most people today. Get a big nest egg invested in the stock market, and then buy a house somewhere affordable with cash when you're ready to retire.
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
@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.
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.
Main thing is just building more houses. Reform zoning rules and LDRs, eliminate Byzantine permitting processes and speed up approvals dramatically, eliminate the roadblocks where neighbors can stall with endless community approval meetings.
This is CNBC’s best video. Incredible sources. Incredibly objective information. Very well researched. Whoever produced this video deserves a nice bonus this holiday season!!!
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.
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.
The US gets about 35% of its lumber to build homes from Canada. The 25% tariffs coming in January will drive home prices way up. Also, rounding up immigrants will leave a huge shortage in home building labor, which will also do the same. The United States imports home building materials from Mexico, though the volume and type of materials differ from those imported from Canada. Significant building materials imported from Mexico subject to tariffs include cement, steel, tiles, glass, and pre-fabricated parts for homes that will also work to drive prices up on new home construction. This will drive demand up on used homes because new homes will be too expensive to build, but with higher demand means used homes will skyrocket too. And finally, the 4 future interest rate cuts planned for 2025 have now been reduced to 2, and I wouldn't expect significant movement with inflation lingering.
Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside holding. I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time
I'm new to cryptocurrency and don't understand how it really works. how Can someone know the right approach to investing and making good profits from cryptocurrency investments?
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Gerard. A widely known crypto consultant
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.
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.
@@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.
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.
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.
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.
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.
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?
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.
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).
@@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!~
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).
🤓 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
@@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.
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
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 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.
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?!
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
Moving from areas where the average is a million. So when they sold thier house they now have a ton of cash. Or are in an area where the average is much lower.
My first home back in 1991 had an interest rate of 8.5% . Today's rate looks like a bargain in comparison. The banks are quick to respond to rate increase but are reluctant to lower them. Usually, it takes over a year to see any serious decrease in mortgage rates once the Fed takes action.
It's why I'm not buying a house at the moment. Prefer to be investing at this time. It's why I've been thinking of diversification. I have about 200k I would like to spread across across different investment classes, including and especially stocks and digital assets. Could you make any recommendations for me?
That's a good way to go. I had some difficulties two years ago when I wanted to invest some money in the digital cryptocurrencies, but I started with a CFP and investment just feels really easy since then and I've also made a lot of profit.
I agree. I also work with a CFP who has a good understanding of both the digital market and stock market. These days experts who have an all-round understanding are in short supply. This last quarter alone I've already made more than 150k in net profit.
Her name is Marissa Lynn Babula . I can't divulge much. Most likely, the internet should have her basic info, you can research if you want to reach her.
Mortgage rates don't matter to cash paying investors. This is about keeping middle class families from owning homes, and enabling investors to buy more. If you're not an investor and able to buy a home, it's making the banks wealthier. So it's a win for everyone except the middle class family buying a home. Banks and investors are winners.
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.
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 ......
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.
@ 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.
These are great rates historically. Since the 2008 housing market crash interest rates were artificially depressed until the Fed raised interest rates to combat inflation post COVID. The problem isn't the mortgage rate, the problem is wages have been stagnant and not kept up with inflation for decades and the prices of homes have continued to rise.
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.
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.
The problem alot of people have is that the Fed Rate is inconsistent. When the Fed Rate increased sharply a few years ago, mortage rates followed immediately and directly. But when the Fed Rate decreased in 2024, nothing happened.
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.
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.
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.
In Canada, your interest rate resets about every 5 years. Imagine you bought a home pre COVID for 2%, and then had your interest rate go up today at 6%! You'd have to foreclose most likely
@ oh it’s biting Canadian in the ass hard right now. Interest rates have basically doubled in two years. People’s mortgages will go up by thousands per month when they renew.
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.
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..😅
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.
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.
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
@@jonathantaylor6926Rentals could be owned by small investors. Put a cap of say 3 per social security number. Individuals now can own unlimited houses. Some own over 700 and get huge tax breaks on the income. How is that good for inequality?
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.
In Canada, your interest rate resets about every 5 years. Imagine you bought a home pre COVID for 2%, and then had your interest rate go up today at 6%! You'd have to foreclose most likely
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.
@@utah2nyc250haha, imagine paying 2500 a month and it all goes to interest! It’s called rent. Bozo haha, I didn’t even have 6% down and I am spending just as much maybe(10% more) in interest than I would be paying in rent. Take a hike. (Avg Housing prices are up more than 20+% in the past 3years… don’t listen to the other comment)
I will come back to this comment in 4 years when, fed borrowing comes down, inflation stays stag (ie steadily increasing my homes value until government spending completely cools) and few other economic factors like labor market/unemployment upticks to bring interest rates down all while my home will have increased anywhere from 12-18% and I will have built close to 30-40k in equity + 30-40k in principal payments.
When my parents bought their first home in 1970, they had a rate over 14%. They made it work. A 6% rate is more than half of that. I don’t want to hear it was different back then! They worked hard, made crazy sacrifices. Today’s generation has no idea how to sacrifice!
Seriously. AirBNB went from “oh let me rent out a spare room to a random traveler trying to save money” to “wanna be multi-property investor/hustler/‘business owner’”
@@AChillin01R it’s not so much to concept of an adjustable rate mortgage that caused the housing crash (which was just one of many causes), rather it was that buyers of those mortgages were already at the upper end of what they could afford with the teaser rate before the adjustability kicked in. Timing and luck are a big factor, but as rates fluctuate interest paid can decrease over the average maturity, however a buyer would need to factor in upward trends in their housing budgets. Were there predatory lending practices, absolutely. Were there people who preferred to remain uninformed about the largest purchase of their lives, also yes. My opinion is that anyone using government(taxpayer) secured mortgage products like FHA should be required to hire an independent financial advisor to review their budget and true cost of ownership before loans are approved.
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.
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.
@@bobmcbobbington9220New builds are happening, but they are built to rent, not buy. Apartments, townhomes, single family homes, all only rentable. Great for the middle class /s.
The problem isn't a mortgage. The problem is the price of a house. No one can afford them. The average salary of someone in the US is $55k. Yet home prices in most metropolitan areas are well into $400k. That means you have to be making at least $125k to qualify for a mortgage. Starter home and modest home construction hasn't kept up with demand since the 90s. There is a shortage of homes thanks to local zoning boards not approving new home constructions for average wage earners in their areas. On top of that apartments and condo construction hasn't kept up with demand either. The average rent in most metropolitan areas is $2000 or more a month. That means you have to be making 72k per year to qualify to rent.
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?
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."
@@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
@@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.
@@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.
@@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.
Airbnb and Vrbo largely contributed to the current housing crisis. Considering a large portion of these airbnb and Vrbo properties are owned by corporations. During covid, companies were going in and buying properties as soon as they hit the market in cash offers and artificially inflating the housing market.
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.
There are individuals with 700 houses. Not just a few houses. The capital growth just accelerates and the rental income so it just grows and grows, all the while they get tax breaks.
No you Commie, it won't 'get rid of the housing crisis and generate more tax revenue'. That would collapse the entire market and people would lose their shirts with prices going to zero.
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.
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.
The demand is coming from multiple home ownership (some individuals have 700 investment single family homes) and corporations owning and never selling. Also, the majority of new construction is rental only, so does not contribute to new housing stock. Basically we're screwed until we can make some progress with new laws to get corporations out of the market.
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.
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.
@ 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.
@@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
I own 3 rental properties with 8 percent interest rates. I cant get a refinance below 7.25 percent plus its difficult to find good tenants. I had to evict two of them. Huge crisis
In my area of Washington state, if you can afford to buy now, do it. I bought an investment property a year ago when rates peaked at 8.125 and STILL got appreciation on it making me 80k in a year. Buy and wait, don’t wait and buy. As soon as these rates drop, do you think it’s going to get worse or get better for home prices…?
From $10,000 to $50,000 that's the minimum range of profit return every week I thinks it's not a bad one for me. now I have enough to pay my bills and take care of my family❤
Hello, how did you achieve such biweekly returns? I'm a newbie and I've lost a lot of money investing on my own. Please can you advise on how to go about this?
This is correct,Mark hutchinson strategy has normalized winning tra-des for me also and it's a huge milestone for me looking back to how it all started,...
We boguth a house earlier this year. With the mortgage rates, and the closing costs, we didnt want to have to deal with a mortgage, so i sold a bunch of stock and we bought it for cash, outbidding 9 other offers. It made the buying process way simpler (we only needed to sign about half a dozen documents), but writing a $400k+ check was painful.😂 Having no mortgage afterwards so we both maximize building our saving back up again has been good.
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
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.
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.
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
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.
As someone who’s in the finance industry it’s really annoying how wrong they get small key details which over the course of the video makes it all wrong in some manner
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...
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.
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
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?
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?
As a beginner, it is essential that you have a mentor to help you stay accountable. In my case, Miss Luara Clarence has guided me for years and I highly recommend her. I focus on her. To be honest, I'm almost hesitant to let someone take charge of growing my finances, but I'm so glad I did.
Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.
It's understandable that the current mass hysteria and panic are palpable. After all, we're not used to dealing with troubled markets. However, as you rightly pointed out, there are options available if you know where to look. Personally, I've been able to make a profit of over $850k in the last 10 months. It wasn't a complicated strategy that I used, I just knew that I needed a reliable and robust approach to navigate these trying times. That's why I hired a portfolio advisor.
Recently, I have been exploring the possibility of consulting with advisors. As a mature individual, I am in need of guidance, but I am curious to know how truly impactful their services can be?
They are truly top-notch in their profession; I had the pleasure of working with one and it proved to be immensely advantageous as they helped me restructure my entire portfolio. My advisor is none other than Carol Vivian Constable , a renowned figure in her line of work whom you may be familiar with.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
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.
@@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.
The mortgage rates are not terrible and people will sell when they need to. The bigger issue is just the price of homes overall. The government's response to the 2009 crash followed by COVID and government's response led to a housing shortage. During the pandemic, homes prices increased by $150k in my area. I think that over the next 5 years or so, prices will come down as people move and as boomers age out. In the shorter-term, all we can do is hope that builders build more and lower prices - of course, until they need to compete with more homes on the secondary market, there is not much incentive to lower prices except somewhat elevated mortgage rates tamping down demand.
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.
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
@@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
The problem is that mortgage rates don’t just follow Fed rate cuts directly. They’re influenced by other factors like bond yields, market demand, and even lender margins. Right now, inflation and market volatility are playing a huge role in keeping those rates higher than we’d expect.
That makes sense, but it’s still stressful for people trying to buy a home or refinance. I feel like the financial system is just so unpredictable lately. It’s hard to know where to put your money.
You’re not alone. It’s frustrating. The Fed sets short-term rates, but mortgage rates are influenced more by long-term Treasury yields, which don’t always move in sync. Lenders also factor in risk, inflation, and market demand, which are high right now.
That’s why I turned to a CFA like Joseph Nick Cahill. He’s helped me rebalance my portfolio and minimize risks, even with today’s volatile rates. He offers free consultations, so it’s worth reaching out to see how he can help you position yourself for better outcomes
Really? I’ve been doing everything on my own, but it’s not working
Exactly. Joseph Nick Cahill helped me avoid some common traps-like sitting on too much cash, chasing risky stocks, or not diversifying. He has years of experience helping people grow their portfolios safely, both for long-term and short-term goals. Give him a shot; he’s really made a difference for me.
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!!!
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 😂😂😂
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.
And some of them foolishly refused to buy a home before they were born! What were they thinking?
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.
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😅
Get corporations out of home ownership
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.
@@SnowBalling Accurate too, but there's no incentive to do this while corporate is still deep in residential real state.
Nah its just your entitled loser
@@SnowBallingsite your source
24% cash buying rate means the very well off are buying houses right now 🤠
Ugh, $1,373 a month vs $2,222 hurts a lot.
How about 5600? Yeah. That's me.
That's the crazy thing. All that money in interest . It's not a 5 year loan, it's a 30 year loan.
@@johnnymichael1804bro let me guess, California
lenders owe YOU nothing. they like the arrangement, LOL!
ACTUALLY CRAZY
Remember how we were told ALL YEAR "once the Fed starts trimming rates, mortgage rates will go down!!!" - yeah...about that.
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.
“Transitory” 😂😂😂
It's a mathematical fact they will
@@samsonsoturian6013 Lol no its not.
Nah, you don't understand how market rate works @@samsonsoturian6013
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.
Someone who actually wants to sell it will.
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.
@@memoperez7842 you mean the ones that bought it for 200k a few years ago and now want 500k? No, they're just greedy.
@@memoperez7842unless that employment rate keeps ticking up
Greed... US dollar has been collapsing. Assets have value, currency doesn't. War and government spending on snake oil has consequences.
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.
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.
I have tried investing in the cryptocurrency market several times, but was always put off by the fluctuations in the value of the stocks. I would love to hear your advice based on how you did it, as I am ready to embark on the path of passive income.
My certified financial analyst is Alfred Thomas, a recognized figure in his area of work. I recommend doing more research on their credentials. He has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I'm so glad I came across this message. Please, how do I get to him
he communicates using telegrms, using the username.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on. what's the best way to grow my income.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Mind if I ask you to recommend this particular coach you using their service?
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with “Laurel Ann Watkins” for years and highly recommend her. Look her up to see if she meets your criteria.
Thanks for sharing. I searched her full name and found her website instantly. After reviewing her credentials and conducting due diligence, I reached out to her.
First mortgages with rates of 8 to 9% and 9% to 10% were common when I bought my first house to live in, which was in Miami in the early 1990s. People will have to come to terms with the fact that we may never get back to 3%. Home prices will have to drop if sellers are forced to sell, and appraisals will drop as a result. I'm very certain that I'm not the only one thinking this.
In fact, it will only grow worse. Affordable homes will soon become unaffordable. Therefore, if anyone wants to do something, I suggest doing it right away because tomorrow's costs will appear to be lower than they are today. I believe that frenzy brought on by excessive inflation will persist until the Fed tightens its regulations considerably further. The bandage cannot be torn off in the middle.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Her name is Lauren Camille Brown . I can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I’ve just looked up her full name on my browser and found her webpage, very much appreciate this
If sellers must sell, home prices will have to decline, and lower evaluations will follow. However, people will have to accept ''reality'' that we won't ever return to 3%. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.
U.S stocks have historically been the best investment imho. Home prices will need to fall at least 40% before the market normalizes.
I like both, but most of the millionaires I know gained wealth through diversified investments and they all had a sort of FA guidance
Straight up, advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio, since the 2020 stock market crash to date, resulting to a 7 figure amount after 100s of thousands invested. Nothing beats expertise!
@@M.Herlihy thats major! mind if I look up the professional guiding you please? I've worked in real estate for over 10 years and neglected a major stock portfolio, however I need a different plan now
Karen Lynne Chess is the licensed advisor I use. Just google the name and you’d find necessary details. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
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.
They are stabilizing the housing market in Ukraine.
it's not the interest rates, it's the massive lack of supply
#Jews
You said it right!
Finally someone who makes sense
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.
Nope
Mass illegal immigration putting a chokehold on the housing supply
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.
Some of these techbros and super rich are contributors as well. My aunt continuously brags about her friend's son who supposedly works in SpaceX and owns 10 homes, blissfully unaware of the fact that my aunt herself will never own a home because of these greedy assholes.
It's such a small part of the problem. Nimbys not letting other housing be built is a much bigger problem.
@@legendary_soup4454 Considering how Atlanta or Wake County, NC look like - urban sprawl - NIMBYism is completely justified. How many forests are they going to clearcut? How many people can you pack into one space? How inflated can the housing prices be?
The current market/economy is unnecessarily tougher for bloomers/senior citizens. Over the years I was just buying and holding onto potential assets, which doesn’t seem applicable to the current rollercoaster market trend, plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Before you start investing, it's crucial to understand the basics of investing in different assets and their associated risks. Are you investing for retirement, buying a home, or building an emergency fund? Your goals will help shape your investment strategy.
Knowing today's market culture,the challenge is to recognize when to purchase or sell stocks, which is pretty simple for experts. Through portfolio restructuring and diversification with good ETFs, S&P 500 and growth stocks, I've turned my portfolio around from $180k to over $440k in a year. My advisor chooses entry and exit orders.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Sherry Ann Klein has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you need an excellent collaboration.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
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.
@@PatrickLloyd- My partner’s been considering going the same route, could you share more info please on the advisor that guides you
I've stuck with SOPHIE LYNN CARRABUS before the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
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.
Wow. That is a very good deal in this economy 👍
Yup all my friends sitting at 2-3% said they are dying with that house 😂
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.
@@Shaojeemy with the way things are going, a lot of us gonna be dying in other peoples' houses ..
A lot of people took too much advantage of that and now are bankrupt or stuck working jobs they hate
The Federal Reserve halted rate hikes, which is a very bold move by the Fed to stimulate economic expansion, ease financial conditions and address inflation concerns with potential benefits for consumers. The major concern for me and I believe every other investor is on opportunities present in the market to enhance overall portfolio performance
Not offering any particular advice, but I can assure you that most stocks still have growth potential. but in order to execute such effective transactions, you must be a pro or work with an investment advisor
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 15% short of my $1 million retirement goal thanks to my subsequent investments.
@@DonaldStokes-p This is incredible. Could you recommend who you work with? I really could use some help at this moment.
Sharon Ann Meny is the licensed advisor I use. Just search the name. You’d find her webpage and necessary details to work with to set up an appointment.
Thank you for the recommendation. I'll send her an email, and I hope I'm able to reach her.
Because companies are banking on us being used to the high prices.
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'......
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..😅
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!
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.
That aint the middle thats hella low
Got mine at 5 percent in 2018 and I feel fortunate.
Bought my home in 2018 for $750k and refinanced in 2021 at 2.75%. Now I rent it out for $5k/month and was able to buy a new home this year. Not planning to ever sell and pay a realtor 5%…that’s crazy.
Let individuals borrow from the Fed at the same rates as the big banks.
That will be the end of capitalism. Anything that does not benefit the billionaires is deemed socialism.
why? the risk for individual borrowing is substantially higher than the big banks. Your idea makes no sense.
@@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.
@@aeroeng22yeah because banks never do anything risky. Stop man. So dumb
@@aeroeng22you're slow. Smh
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.
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.
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
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
‘’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..
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.
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?
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.
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.
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?
My CFA Stacy Lynn Staples a renowned figure in her line of work. I recommend researching her credentials further.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
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
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.
@@SnowBalling Even with more supply they will keep buying and buying and out bidding the average joe every time.
Corporate greed😂 my guy everyone is greedy look at the home sellers who refuse to sell their tiny box homes for under 500k
@@chadxlr3978 True but the Corporations are the ones buying those homes not the average joe.
Liars get scalped
As someone who is now looking for our first home. The market has defiantly flipped. Seeing houses on the market for months. But yes two houses yesterday we looked at were owned by a company.
American dream is dead for middle class workers.
Gotta be asleep to believe it
Thanks to Joe Biden
American Dream was a con
we never left the crown
and its become more apparent than EVER
@@Jwdude123 soft in the head like Trumps diaper?
yep, swarmy elon gonna see to that!
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
This isn’t a guarantee though. HOA fees can go up. Mortgage insurance can go up. Property taxes can skyrocket.
I agree,if only you can comfortably afford the payment.
If they invested the difference into the S&P 500 they would probably be better off today. And they would have had more flexibility to move cities for pay increases. Renting is generally the better option for most people today. Get a big nest egg invested in the stock market, and then buy a house somewhere affordable with cash when you're ready to retire.
@ considering my family bought a house in Silicon Valley for 300k at the time and houses are at astronomical prices now I think they’re good mate
It's because we are getting screwed by crooks.
Only you
You spelled jews wrong. I get it though **wink wink**
You know nothing mace windu. Took you 3 movies to realize the with were under your nose
@@samsonsoturian6013 nah. Only you broke boy😂😂😂
hey at least the politicans voted for a 40% raise in their salary. They don't have to suffer like the peasants.
I'm very disappointed this didn't mention hedge funds buying entire housing developments..... A huge impact....
Nope
Mass illegal immigration putting a chokehold on the housing supply
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
@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.
Only 6% of the market are hedge funds in housing. Stop with the lies
Air bnbs are also a factor.
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.
Main thing is just building more houses. Reform zoning rules and LDRs, eliminate Byzantine permitting processes and speed up approvals dramatically, eliminate the roadblocks where neighbors can stall with endless community approval meetings.
It won’t
That’s very socialist of you. I’m all for it! 👍🏽😛
Found the landlord
@@shroopableshow me a city that can afford that
This is CNBC’s best video. Incredible sources. Incredibly objective information. Very well researched.
Whoever produced this video deserves a nice bonus this holiday season!!!
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.
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.
The US gets about 35% of its lumber to build homes from Canada. The 25% tariffs coming in January will drive home prices way up. Also, rounding up immigrants will leave a huge shortage in home building labor, which will also do the same. The United States imports home building materials from Mexico, though the volume and type of materials differ from those imported from Canada. Significant building materials imported from Mexico subject to tariffs include cement, steel, tiles, glass, and pre-fabricated parts for homes that will also work to drive prices up on new home construction. This will drive demand up on used homes because new homes will be too expensive to build, but with higher demand means used homes will skyrocket too. And finally, the 4 future interest rate cuts planned for 2025 have now been reduced to 2, and I wouldn't expect significant movement with inflation lingering.
Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside holding. I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time
I'm new to cryptocurrency and don't understand how it really works. how Can someone know the right approach to investing and making good profits from cryptocurrency investments?
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Gerard. widely known crypto consultant
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Gerard. A widely known crypto consultant
I'm a beginner please how can i reach out Gerard Wentz
BUILD. MORE. HOMES.
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.
Ya why don't u got start building some lazy
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.
@ you’re an idiot. Do you not realize how undersupplied we are? Build 10 million new housing units and this problem vanishes.
@@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.
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.
Your wages just aren't keeping up with inflation.
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.
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.
The problem is now they're building homes that are just rentals only. So you're screwed either way.
Making housing an investable asset... what could go wrong?
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.
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?
Right. Because patriotism doesn't exist for the rich. It's just how they organize the rest of us.
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.
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).
@@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!~
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).
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
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%.
🤓 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
@@fixerdrew02 Exactly.
Exactly
Both are important and are also related
None of this matters if corporations out bet the sales and turn them into rental units.
High rates from the fed haven't helped but so is the lack of affordable housing.
So what? If you had the money I'm sure your landlord will sell to you
@@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.
Rent or buy, supply and demand is the same.
Rates are not a problem. Mortgages should cost something, the issue mainly is the home prices.
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
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.
Excepts for prices don't come down.
@@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.
@jonb740 they can and have gone down, it's just not likely due to inflation and rising population density
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?!
They are coming from CA and NY where homes are way overpriced and buying up ‘less expensive’ homes everywhere else.
Blame the chinese
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
NVIDIA employees
Moving from areas where the average is a million. So when they sold thier house they now have a ton of cash. Or are in an area where the average is much lower.
My first home back in 1991 had an interest rate of 8.5% . Today's rate looks like a bargain in comparison. The banks are quick to respond to rate increase but are reluctant to lower them. Usually, it takes over a year to see any serious decrease in mortgage rates once the Fed takes action.
It's why I'm not buying a house at the moment. Prefer to be investing at this time. It's why I've been thinking of diversification. I have about 200k I would like to spread across across different investment classes, including and especially stocks and digital assets. Could you make any recommendations for me?
That's a good way to go. I had some difficulties two years ago when I wanted to invest some money in the digital cryptocurrencies, but I started with a CFP and investment just feels really easy since then and I've also made a lot of profit.
I agree. I also work with a CFP who has a good understanding of both the digital market and stock market. These days experts who have an all-round understanding are in short supply. This last quarter alone I've already made more than 150k in net profit.
Sounds interesting! Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Her name is Marissa Lynn Babula . I can't divulge much. Most likely, the internet should have her basic info, you can research if you want to reach her.
Thanks a lot for the recommendation. I'll send her an email and I hope I'm able to connect with her.
Mortgage rates don't matter to cash paying investors. This is about keeping middle class families from owning homes, and enabling investors to buy more. If you're not an investor and able to buy a home, it's making the banks wealthier. So it's a win for everyone except the middle class family buying a home. Banks and investors are winners.
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.
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 ......
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.
@ 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.
These are great rates historically. Since the 2008 housing market crash interest rates were artificially depressed until the Fed raised interest rates to combat inflation post COVID. The problem isn't the mortgage rate, the problem is wages have been stagnant and not kept up with inflation for decades and the prices of homes have continued to rise.
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.
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.
The buyer doesn't pay the commission.
@@sacrugby1 But now they can with the law that passed.
@@sacrugby1 Where do you think the money comes from? Just like credit card processing fees, its always the buyer footing the bill.
Realestate agents have nothing to do with affordability.
The problem alot of people have is that the Fed Rate is inconsistent. When the Fed Rate increased sharply a few years ago, mortage rates followed immediately and directly. But when the Fed Rate decreased in 2024, nothing happened.
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.
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.
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.
In Canada, your interest rate resets about every 5 years. Imagine you bought a home pre COVID for 2%, and then had your interest rate go up today at 6%! You'd have to foreclose most likely
That would be annoying has hell. Never knowing what the cost is going to be.
@ oh it’s biting Canadian in the ass hard right now. Interest rates have basically doubled in two years. People’s mortgages will go up by thousands per month when they renew.
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.
Its hard to compete with BlackRock buying up houses
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..😅
This country was built on no tax now we’re taxed like hell
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.
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.
So there would be no rentals at all?
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
@@jonathantaylor6926Rentals could be owned by small investors. Put a cap of say 3 per social security number. Individuals now can own unlimited houses. Some own over 700 and get huge tax breaks on the income. How is that good for inequality?
Home prices were much lower in 21, and I have yet to meet someone who put 20% down on a house. This dramatically understates the current cost.
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.
In Canada, your interest rate resets about every 5 years. Imagine you bought a home pre COVID for 2%, and then had your interest rate go up today at 6%! You'd have to foreclose most likely
Nobody cares about the mortgage rate. It’s the PRICES of the houses that scare me.
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.
I see you are not too smart 😂😂😂 imagining paying 2500 mortgage and 1700 goes to interest
@@utah2nyc250haha, imagine paying 2500 a month and it all goes to interest! It’s called rent. Bozo haha, I didn’t even have 6% down and I am spending just as much maybe(10% more) in interest than I would be paying in rent. Take a hike. (Avg Housing prices are up more than 20+% in the past 3years… don’t listen to the other comment)
I will come back to this comment in 4 years when, fed borrowing comes down, inflation stays stag (ie steadily increasing my homes value until government spending completely cools) and few other economic factors like labor market/unemployment upticks to bring interest rates down all while my home will have increased anywhere from 12-18% and I will have built close to 30-40k in equity + 30-40k in principal payments.
Everyone cares about the mortgage rate !!!
When my parents bought their first home in 1970, they had a rate over 14%. They made it work. A 6% rate is more than half of that. I don’t want to hear it was different back then! They worked hard, made crazy sacrifices. Today’s generation has no idea how to sacrifice!
Need more housing. That would be a start.
Let's not forget about the Short term rental pumping demand 😂
Seriously. AirBNB went from “oh let me rent out a spare room to a random traveler trying to save money” to “wanna be multi-property investor/hustler/‘business owner’”
So in other words, we’re screwed?
You don’t say! Tell me something I don’t know Buster.
For now. The current situation is untenable.
No. Just put your money in other assets and watch from the sidelines until the game is fair 😊
Unless you bought a home before 2020. Then you’re OK. New home owners after the pandemic are screwed. Unless you got money!
Yep unless you’re a baby boomer. Houses during their time were about $40-60,000. I wish houses were at that price today.
Mortgages are tied to the 10y yield more so than the EFFR...this is simple economics. Entry level college economics if that.
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)
ARMs played a big part in the housing bubble crash.
@@AChillin01R it’s not so much to concept of an adjustable rate mortgage that caused the housing crash (which was just one of many causes), rather it was that buyers of those mortgages were already at the upper end of what they could afford with the teaser rate before the adjustability kicked in. Timing and luck are a big factor, but as rates fluctuate interest paid can decrease over the average maturity, however a buyer would need to factor in upward trends in their housing budgets.
Were there predatory lending practices, absolutely. Were there people who preferred to remain uninformed about the largest purchase of their lives, also yes. My opinion is that anyone using government(taxpayer) secured mortgage products like FHA should be required to hire an independent financial advisor to review their budget and true cost of ownership before loans are approved.
My Gf and I wanted to buy a house on the Cape, nothing in our price range. Luckily we found a place in Rhode Island. We totally lucked out.
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.
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.
@bobmcbobbington9220 Considering I said it was partially because we don't have enough homes, I see we actually partially agree. :-)
@@bobmcbobbington9220New builds are happening, but they are built to rent, not buy. Apartments, townhomes, single family homes, all only rentable. Great for the middle class /s.
CORPORATIONS SHOULD NOT BE ALLOWED TO HOARD SINGLE FAMILY HOMES!!!!
Just got mine at 6.1 !
Good for you. Also looking to lock and so upset I didn’t lock the beginning of December when there was a dip.
@ yeah I just got lucky, I don’t follow the rates. locked it the beginning of November or end of October
The problem isn't a mortgage. The problem is the price of a house. No one can afford them. The average salary of someone in the US is $55k. Yet home prices in most metropolitan areas are well into $400k. That means you have to be making at least $125k to qualify for a mortgage. Starter home and modest home construction hasn't kept up with demand since the 90s. There is a shortage of homes thanks to local zoning boards not approving new home constructions for average wage earners in their areas. On top of that apartments and condo construction hasn't kept up with demand either. The average rent in most metropolitan areas is $2000 or more a month. That means you have to be making 72k per year to qualify to rent.
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?
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."
@@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
@@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.
@@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.
@@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.
Airbnb and Vrbo largely contributed to the current housing crisis. Considering a large portion of these airbnb and Vrbo properties are owned by corporations. During covid, companies were going in and buying properties as soon as they hit the market in cash offers and artificially inflating the housing market.
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.
There are individuals with 700 houses. Not just a few houses. The capital growth just accelerates and the rental income so it just grows and grows, all the while they get tax breaks.
No you Commie, it won't 'get rid of the housing crisis and generate more tax revenue'. That would collapse the entire market and people would lose their shirts with prices going to zero.
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.
You are over simplifying. Watch the darn video.
@@bobmcbobbington9220 Thank you for your advice, I appreciate the feedback.
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.
That actually rarely happens. so no.
The demand is coming from multiple home ownership (some individuals have 700 investment single family homes) and corporations owning and never selling. Also, the majority of new construction is rental only, so does not contribute to new housing stock. Basically we're screwed until we can make some progress with new laws to get corporations out of the market.
That's never going to happen as long as capitalism prevails...
It’s because we view housing as an investment vehicle and not a human right
“Normal economic conditions” lol
Prices are resilient because those with super low mortgages aren’t willing to sell and move or they lose the rate.
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.
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.
This is very true
I guess only people who doesn't own a house like me getting stuck renting in California and can't relocate.
@@kyeorlam1351you got to save to get a good down payment, and find a home in a cheaper area to buy,
@ 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.
It’s simple greed
Record high house prices make it impossible for first time home buyers. Everything has gone up besides average people's wages!
Liar
@@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
@samsonsoturian6013 Shut up you must be rich so it doesn't affect you!
I own 3 rental properties with 8 percent interest rates.
I cant get a refinance below 7.25 percent plus its difficult to find good tenants. I had to evict two of them. Huge crisis
Bankers are telling the government what to do… when did they become more powerful than the government…. 😅
In my area of Washington state, if you can afford to buy now, do it. I bought an investment property a year ago when rates peaked at 8.125 and STILL got appreciation on it making me 80k in a year. Buy and wait, don’t wait and buy. As soon as these rates drop, do you think it’s going to get worse or get better for home prices…?
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We boguth a house earlier this year. With the mortgage rates, and the closing costs, we didnt want to have to deal with a mortgage, so i sold a bunch of stock and we bought it for cash, outbidding 9 other offers. It made the buying process way simpler (we only needed to sign about half a dozen documents), but writing a $400k+ check was painful.😂 Having no mortgage afterwards so we both maximize building our saving back up again has been good.
26% paid in cash!
Yeah that’s nuts!
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
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.
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.
Simple. It's corporate greed.
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
"Corporate greed" or "President I don't like" is actually not the answer to all economic issues like the majority of Americans believe.
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.
Corporate buyers are 5% of the market, so no. It’s supply and demand. We have under built housing for thirty years.
As someone who’s in the finance industry it’s really annoying how wrong they get small key details which over the course of the video makes it all wrong in some manner
they are going up. look up inflation
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...
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.
What’s the alternative? Rent is higher than mortgages now
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
$80k every 4 weeks! I now have a good house and can now afford anything and also support my family😎
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Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
It's understandable that the current mass hysteria and panic are palpable. After all, we're not used to dealing with troubled markets. However, as you rightly pointed out, there are options available if you know where to look. Personally, I've been able to make a profit of over $850k in the last 10 months. It wasn't a complicated strategy that I used, I just knew that I needed a reliable and robust approach to navigate these trying times. That's why I hired a portfolio advisor.
Recently, I have been exploring the possibility of consulting with advisors. As a mature individual, I am in need of guidance, but I am curious to know how truly impactful their services can be?
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Also home owners insurance has increased substantially or impossible to get in some areas
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.
Especially for homes that have not even been upgraded. lol
This does not immediately impact your mortgage rate. Your mortgage rate is the cost to borrow. Low mortgage rates increase home prices.
@@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.
The mortgage rates are not terrible and people will sell when they need to. The bigger issue is just the price of homes overall. The government's response to the 2009 crash followed by COVID and government's response led to a housing shortage. During the pandemic, homes prices increased by $150k in my area. I think that over the next 5 years or so, prices will come down as people move and as boomers age out. In the shorter-term, all we can do is hope that builders build more and lower prices - of course, until they need to compete with more homes on the secondary market, there is not much incentive to lower prices except somewhat elevated mortgage rates tamping down demand.
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.
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
@@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
@@DMAN590 liars get scalped
@@samsonsoturian6013 I'd be looking over your shoulder then.
@@samsonsoturian6013 Ironic thing for you to say