Why Fed Rate Cuts Aren’t Making Mortgages Cheaper

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  • Опубликовано: 19 дек 2024

Комментарии • 964

  • @MrHav1k
    @MrHav1k 23 часа назад +406

    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!!!

    • @michanel888
      @michanel888 21 час назад +1

      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 😂😂😂

    • @RossMalagarie
      @RossMalagarie 20 часов назад +2

      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.

    • @darkwing3713
      @darkwing3713 18 часов назад +5

      And some of them foolishly refused to buy a home before they were born! What were they thinking?

    • @soldog8191
      @soldog8191 18 часов назад +1

      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.

    • @nongnaphass8828
      @nongnaphass8828 17 часов назад

      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😅

  • @_TheDeanMachine
    @_TheDeanMachine День назад +1045

    Get corporations out of home ownership

    • @SnowBalling
      @SnowBalling День назад +70

      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.

    • @mr.castle
      @mr.castle День назад +30

      ​@@SnowBalling Accurate too, but there's no incentive to do this while corporate is still deep in residential real state.

    • @AK255.
      @AK255. День назад

      Nah its just your entitled loser

    • @markmilitant
      @markmilitant День назад +12

      @@SnowBallingsite your source

    • @zzzT.
      @zzzT. День назад +19

      24% cash buying rate means the very well off are buying houses right now 🤠

  • @jeremiahm1413
    @jeremiahm1413 День назад +379

    Remember how we were told ALL YEAR "once the Fed starts trimming rates, mortgage rates will go down!!!" - yeah...about that.

    • @Jaigarful
      @Jaigarful День назад +16

      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.

    • @mdog6726
      @mdog6726 День назад +13

      “Transitory” 😂😂😂

    • @samsonsoturian6013
      @samsonsoturian6013 День назад +3

      It's a mathematical fact they will

    • @jonathantaylor6926
      @jonathantaylor6926 День назад +5

      @@samsonsoturian6013 Lol no its not.

    • @gonnabehappy
      @gonnabehappy День назад

      Nah, you don't understand how market rate works ​@@samsonsoturian6013

  • @thisfoxgames
    @thisfoxgames День назад +164

    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.

    • @darinherrick9224
      @darinherrick9224 День назад +4

      Someone who actually wants to sell it will.

    • @memoperez7842
      @memoperez7842 18 часов назад +2

      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.

    • @thisfoxgames
      @thisfoxgames 18 часов назад +15

      @@memoperez7842 you mean the ones that bought it for 200k a few years ago and now want 500k? No, they're just greedy.

    • @Chocochiphoneydip165
      @Chocochiphoneydip165 18 часов назад

      @@memoperez7842unless that employment rate keeps ticking up

    • @robbank8027
      @robbank8027 17 часов назад +1

      Greed... US dollar has been collapsing. Assets have value, currency doesn't. War and government spending on snake oil has consequences.

  • @MaxVids1
    @MaxVids1 День назад +123

    Ugh, $1,373 a month vs $2,222 hurts a lot.

    • @johnnymichael1804
      @johnnymichael1804 День назад +12

      How about 5600? Yeah. That's me.

    • @Hanmura_
      @Hanmura_ 23 часа назад +1

      That's the crazy thing. All that money in interest . It's not a 5 year loan, it's a 30 year loan.

    • @juanlopez3000
      @juanlopez3000 21 час назад

      @@johnnymichael1804bro let me guess, California

    • @earl-d4n
      @earl-d4n 20 часов назад

      lenders owe YOU nothing. they like the arrangement, LOL!

    • @Sonofawildanimal
      @Sonofawildanimal 20 часов назад

      ACTUALLY CRAZY

  • @jonathantaylor6926
    @jonathantaylor6926 День назад +134

    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.

  • @MrHav1k
    @MrHav1k День назад +105

    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.

    • @Rommie26
      @Rommie26 20 часов назад

      Nope
      Mass illegal immigration putting a chokehold on the housing supply

    • @TMoney-wt1cw
      @TMoney-wt1cw 18 часов назад +6

      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.

  • @tylertass9983
    @tylertass9983 День назад +51

    Let individuals borrow from the Fed at the same rates as the big banks.

    • @memoperez7842
      @memoperez7842 18 часов назад

      That will be the end of capitalism. Anything that does not benefit the billionaires is deemed socialism.

    • @aeroeng22
      @aeroeng22 4 часа назад +2

      why? the risk for individual borrowing is substantially higher than the big banks. Your idea makes no sense.

    • @Sangramoire
      @Sangramoire 3 часа назад

      ​@@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.

    • @Corndogg316
      @Corndogg316 Час назад

      @@aeroeng22yeah because banks never do anything risky. Stop man. So dumb

  • @sarawilliam696
    @sarawilliam696 23 часа назад +337

    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.

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl 23 часа назад +2

      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.

    • @carssimplified2195
      @carssimplified2195 23 часа назад +3

      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

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io 23 часа назад +2

      How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

    • @carssimplified2195
      @carssimplified2195 23 часа назад +1

      ‘’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..

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io 23 часа назад

      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.

  • @dieterjacobs9350
    @dieterjacobs9350 23 часа назад +96

    I'm very disappointed this didn't mention hedge funds buying entire housing developments..... A huge impact....

    • @Rommie26
      @Rommie26 20 часов назад

      Nope
      Mass illegal immigration putting a chokehold on the housing supply

    • @CharlieBam
      @CharlieBam 12 часов назад +5

      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

    • @dieterjacobs9350
      @dieterjacobs9350 8 часов назад

      @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.

    • @stevechrollo8074
      @stevechrollo8074 8 часов назад +1

      Only 6% of the market are hedge funds in housing. Stop with the lies

    • @JetSkiBuyFixPlaySellChannel
      @JetSkiBuyFixPlaySellChannel 7 часов назад

      Air bnbs are also a factor.

  • @nathanluker9889
    @nathanluker9889 День назад +149

    American dream is dead for middle class workers.

    • @FutureDreamZz
      @FutureDreamZz 23 часа назад +6

      Gotta be asleep to believe it

    • @Jwdude123
      @Jwdude123 21 час назад +5

      Thanks to Joe Biden

    • @bobshagit
      @bobshagit 21 час назад

      American Dream was a con
      we never left the crown
      and its become more apparent than EVER

    • @javierg.249
      @javierg.249 20 часов назад

      ​@@Jwdude123 soft in the head like Trumps diaper?

    • @earl-d4n
      @earl-d4n 20 часов назад +2

      yep, swarmy elon gonna see to that!

  • @kbrizy7490
    @kbrizy7490 День назад +114

    Because companies are banking on us being used to the high prices.

    • @B126USMC
      @B126USMC День назад

      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'......

    • @krztaz3
      @krztaz3 День назад +13

      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..😅

    • @earl-d4n
      @earl-d4n 20 часов назад

      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!

  • @ddc2343d
    @ddc2343d День назад +65

    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.

    • @kittymogulco
      @kittymogulco День назад +2

      Wow. That is a very good deal in this economy 👍

    • @Shaojeemy
      @Shaojeemy День назад +17

      Yup all my friends sitting at 2-3% said they are dying with that house 😂

    • @pheasantnoetic7075
      @pheasantnoetic7075 День назад +14

      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.

    • @pheasantnoetic7075
      @pheasantnoetic7075 День назад +7

      @@Shaojeemy with the way things are going, a lot of us gonna be dying in other peoples' houses ..

    • @samsonsoturian6013
      @samsonsoturian6013 День назад +2

      A lot of people took too much advantage of that and now are bankrupt or stuck working jobs they hate

  • @EdwinNaranjo-Valles
    @EdwinNaranjo-Valles День назад +29

    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

    • @snwboardguy04
      @snwboardguy04 13 часов назад +8

      This isn’t a guarantee though. HOA fees can go up. Mortgage insurance can go up. Property taxes can skyrocket.

    • @Uss997
      @Uss997 Час назад

      I agree,if only you can comfortably afford the payment.

  • @GalaxyTabFamily
    @GalaxyTabFamily День назад +74

    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

    • @AChillin01R
      @AChillin01R День назад +25

      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%.

    • @fixerdrew02
      @fixerdrew02 День назад +9

      🤓 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

    • @AChillin01R
      @AChillin01R День назад

      @@fixerdrew02 Exactly.

    • @rondas7772
      @rondas7772 День назад

      Exactly

    • @chrishewitt5826
      @chrishewitt5826 День назад

      Both are important and are also related

  • @sew2prosper
    @sew2prosper День назад +8

    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.

  • @AKT0B0S
    @AKT0B0S День назад +115

    BUILD. MORE. HOMES.

    • @AChillin01R
      @AChillin01R День назад +25

      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.

    • @AK255.
      @AK255. День назад

      Ya why don't u got start building some lazy

    • @gavinw197
      @gavinw197 День назад +3

      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.

    • @AKT0B0S
      @AKT0B0S День назад +1

      @ you’re an idiot. Do you not realize how undersupplied we are? Build 10 million new housing units and this problem vanishes.

    • @DonJulio4649
      @DonJulio4649 День назад +1

      @@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.

  • @thedman05
    @thedman05 День назад +47

    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

    • @SnowBalling
      @SnowBalling День назад +8

      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.

    • @AChillin01R
      @AChillin01R День назад +2

      @@SnowBalling Even with more supply they will keep buying and buying and out bidding the average joe every time.

    • @chadxlr3978
      @chadxlr3978 День назад +10

      Corporate greed😂 my guy everyone is greedy look at the home sellers who refuse to sell their tiny box homes for under 500k

    • @AChillin01R
      @AChillin01R День назад +3

      @@chadxlr3978 True but the Corporations are the ones buying those homes not the average joe.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      Liars get scalped

  • @technicholy1299
    @technicholy1299 День назад +101

    It's because we are getting screwed by crooks.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      Only you

    • @-Swamp_Donkey-
      @-Swamp_Donkey- 23 часа назад +3

      You spelled jews wrong. I get it though **wink wink**

    • @TreyMiller-j5h
      @TreyMiller-j5h 23 часа назад

      You know nothing mace windu. Took you 3 movies to realize the with were under your nose

    • @jacobarndt2153
      @jacobarndt2153 22 часа назад

      ​@@samsonsoturian6013 nah. Only you broke boy😂😂😂

    • @Ap_twsh
      @Ap_twsh 21 час назад +1

      hey at least the politicans voted for a 40% raise in their salary. They don't have to suffer like the peasants.

  • @heyaswinp
    @heyaswinp День назад +45

    Rates are not a problem. Mortgages should cost something, the issue mainly is the home prices.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад +5

      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

    • @jonathantaylor6926
      @jonathantaylor6926 День назад

      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
      @jonb740 День назад

      Excepts for prices don't come down.

    • @dunggg
      @dunggg День назад

      @@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.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      @jonb740 they can and have gone down, it's just not likely due to inflation and rising population density

  • @bepriceless
    @bepriceless День назад +134

    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.

    • @ajr993
      @ajr993 День назад

      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?

    • @optick3554
      @optick3554 День назад

      Right. Because patriotism doesn't exist for the rich. It's just how they organize the rest of us.

    • @SnowBalling
      @SnowBalling День назад +21

      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.

    • @lakeguy65616
      @lakeguy65616 День назад +8

      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).

    • @josha.bdoge2
      @josha.bdoge2 День назад

      @@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!~

  • @reyesarg
    @reyesarg День назад +26

    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.

    • @lakeguy65616
      @lakeguy65616 День назад +3

      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.

    • @sacrugby1
      @sacrugby1 День назад

      The buyer doesn't pay the commission.

    • @AChillin01R
      @AChillin01R День назад +3

      @@sacrugby1 But now they can with the law that passed.

    • @raymonddamm3214
      @raymonddamm3214 День назад +1

      @@sacrugby1 Where do you think the money comes from? Just like credit card processing fees, its always the buyer footing the bill.

    • @bboyizzy
      @bboyizzy День назад +2

      Realestate agents have nothing to do with affordability.

  • @mikeshafer
    @mikeshafer День назад +27

    Nobody cares about the mortgage rate. It’s the PRICES of the houses that scare me.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад +3

      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.

    • @utah2nyc250
      @utah2nyc250 День назад +4

      I see you are not too smart 😂😂😂 imagining paying 2500 mortgage and 1700 goes to interest

  • @StephanieG.Augustus
    @StephanieG.Augustus День назад +10

    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

    • @CharlesT.Foster
      @CharlesT.Foster День назад +1

      If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

    • @heatherj-o5j
      @heatherj-o5j День назад

      Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

    • @JasonB.Chisolm
      @JasonB.Chisolm День назад

      This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

    • @RobertS.Headrick
      @RobertS.Headrick День назад

      Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.

    • @JasonB.Chisolm
      @JasonB.Chisolm День назад

      Stacy Lynn Staples is a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

  • @Jakesmusings
    @Jakesmusings День назад +16

    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.

    • @bobmcbobbington9220
      @bobmcbobbington9220 4 часа назад

      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.

  • @ltkwok
    @ltkwok 23 часа назад +6

    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.

    • @memoperez7842
      @memoperez7842 18 часов назад

      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.

    • @Rebel635csi
      @Rebel635csi 9 часов назад

      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.

    • @pinkisforpimps
      @pinkisforpimps Час назад

      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

  • @straysheep5312
    @straysheep5312 День назад +15

    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.

    • @Hans-gb4mv
      @Hans-gb4mv День назад

      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.

    • @jonathantaylor6926
      @jonathantaylor6926 День назад +1

      So there would be no rentals at all?

    • @davidhill7071
      @davidhill7071 22 часа назад

      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

  • @withmonis_z
    @withmonis_z 23 часа назад +13

    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❤

    • @ridstrivedi
      @ridstrivedi 23 часа назад +4

      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?

    • @MichelinaStouten
      @MichelinaStouten 23 часа назад

      I've followed many traders over the years, but none have been as consistently accurate as Mr Mark hutchinson... He's truly in an inspiration to us all kudos to him✌✌

    • @withmonis_z
      @withmonis_z 23 часа назад

      High recommended 🙌

    • @ruubipat
      @ruubipat 23 часа назад

      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,...

    • @GiovanniThap
      @GiovanniThap 23 часа назад

      Mr Mark hutchinson distinctive strength is his pragmatic approach, setting him apart from other brokers who often set unrealistic goals and fail to deliver

  • @aaronx375
    @aaronx375 День назад +26

    So in other words, we’re screwed?

    • @StevenKohman
      @StevenKohman День назад +1

      You don’t say! Tell me something I don’t know Buster.

    • @rathelmmc3194
      @rathelmmc3194 День назад

      For now. The current situation is untenable.

    • @Nate12-
      @Nate12- День назад +1

      No. Just put your money in other assets and watch from the sidelines until the game is fair 😊

    • @Sonofawildanimal
      @Sonofawildanimal 20 часов назад +2

      Unless you bought a home before 2020. Then you’re OK. New home owners after the pandemic are screwed. Unless you got money!

    • @AceLopez1
      @AceLopez1 19 часов назад

      Yep unless you’re a baby boomer. Houses during their time were about $40-60,000. I wish houses were at that price today.

  • @albertethan7093
    @albertethan7093 День назад +90

    $80k every 4 weeks! I now have a good house and can now afford anything and also support my family😎

    • @RyanClarence654
      @RyanClarence654 День назад

      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?

    • @BrianKingy
      @BrianKingy День назад

      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?

    • @MuratAydin-un5tu
      @MuratAydin-un5tu День назад

      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.

    • @Michaelsaylor22223
      @Michaelsaylor22223 День назад

      Wow Wow her too Miss Luara Clarence is a remarkable individual whom has brought immense positivity and inspiration into my life.

    • @ALBERTAaron-zt2xy
      @ALBERTAaron-zt2xy День назад

      The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

  • @mydressmemos
    @mydressmemos 16 часов назад +6

    I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

    • @JacobsErick-u8r
      @JacobsErick-u8r 16 часов назад +2

      It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.

    • @richardhudson1243
      @richardhudson1243 16 часов назад +2

      It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $375k to around $650k.

    • @LUCIASMITH-d1z
      @LUCIASMITH-d1z 16 часов назад +1

      in times like these, it's crucial to be cautious and not rush into the market , Who is this your FA , my portfolio needs urgent attention , been a lot of loss.

    • @richardhudson1243
      @richardhudson1243 16 часов назад +1

      Her name is “Melissa Terri Swayne” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

    • @winifred-k9e
      @winifred-k9e 16 часов назад +1

      I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

  • @keithmenzer6454
    @keithmenzer6454 8 часов назад +3

    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.

    • @ChelseaHandler-ip4ku
      @ChelseaHandler-ip4ku 7 часов назад +2

      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.

    • @AarushSyed
      @AarushSyed 7 часов назад +1

      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.

    • @ChelseaHandler-ip4ku
      @ChelseaHandler-ip4ku 7 часов назад +2

      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.

    • @AarushSyed
      @AarushSyed 7 часов назад

      I'm so glad I came across this message. Please, how do I get to him

    • @AmaPk67
      @AmaPk67 7 часов назад +1

      he communicates using telegrms, using the username.

  • @sheabilladeau1392
    @sheabilladeau1392 День назад +6

    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.

    • @attribute-4677
      @attribute-4677 Час назад

      What’s the alternative? Rent is higher than mortgages now

  • @everybodystaycalm5090
    @everybodystaycalm5090 День назад +18

    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.

    • @francismarion6400
      @francismarion6400 День назад +3

      Your wages just aren't keeping up with inflation.

    • @bobmcbobbington9220
      @bobmcbobbington9220 4 часа назад

      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.

  • @mrchad97z49
    @mrchad97z49 23 часа назад +5

    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?

    • @chiplangowski3298
      @chiplangowski3298 22 часа назад +1

      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."

    • @mrchad97z49
      @mrchad97z49 21 час назад

      ​@@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

    • @mrchad97z49
      @mrchad97z49 20 часов назад +1

      @@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.

    • @mrchad97z49
      @mrchad97z49 20 часов назад

      @@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.

    • @mrchad97z49
      @mrchad97z49 20 часов назад

      @@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.

  • @itsa11good23
    @itsa11good23 День назад +8

    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.

    • @B126USMC
      @B126USMC День назад

      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 ......

    • @bobmcbobbington9220
      @bobmcbobbington9220 4 часа назад +1

      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.

    • @itsa11good23
      @itsa11good23 4 часа назад

      @ 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.

  • @rebeltheharem7028
    @rebeltheharem7028 День назад +10

    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).

  • @desiv1170
    @desiv1170 День назад +5

    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.

    • @bobmcbobbington9220
      @bobmcbobbington9220 4 часа назад

      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.

    • @desiv1170
      @desiv1170 4 часа назад

      @bobmcbobbington9220 Considering I said it was partially because we don't have enough homes, I see we actually partially agree. :-)

  • @TheAvtrey
    @TheAvtrey День назад +8

    Making housing an investable asset... what could go wrong?

  • @pauline-o2q
    @pauline-o2q 14 часов назад +4

    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?

    • @JasonB.Chisolm
      @JasonB.Chisolm 14 часов назад

      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.

    • @heatherj-o5j
      @heatherj-o5j 14 часов назад

      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.

    • @RobertS.Headrick
      @RobertS.Headrick 14 часов назад

      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?

    • @heatherj-o5j
      @heatherj-o5j 14 часов назад

      My CFA Stacy Lynn Staples a renowned figure in her line of work. I recommend researching her credentials further.

    • @JohnNgomba-k3v
      @JohnNgomba-k3v 14 часов назад

      I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

  • @vladimirofsvalbard9477
    @vladimirofsvalbard9477 День назад +3

    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.

  • @skulltula6799
    @skulltula6799 20 часов назад +2

    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.

  • @sasstewart1222
    @sasstewart1222 День назад +3

    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)

    • @AChillin01R
      @AChillin01R День назад +2

      ARMs played a big part in the housing bubble crash.

  • @chris-y05
    @chris-y05 День назад +2

    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.

  • @mikebostic9518
    @mikebostic9518 День назад +8

    Need more housing. That would be a start.

  • @kwv889j
    @kwv889j 23 часа назад +1

    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.

  • @Acsana
    @Acsana 17 часов назад +5

    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?!

    • @JayBD626
      @JayBD626 12 часов назад

      They are coming from CA and NY where homes are way overpriced and buying up ‘less expensive’ homes everywhere else.

    • @AM93000
      @AM93000 8 часов назад

      Blame the chinese

    • @abigaelbalbuena1917
      @abigaelbalbuena1917 5 часов назад

      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

    • @SlimSevernick
      @SlimSevernick 4 часа назад +1

      NVIDIA employees

  • @Columbus1492
    @Columbus1492 День назад +4

    Just got mine at 6.1 !

  • @notabot1798
    @notabot1798 День назад +12

    “Normal economic conditions” lol

  • @TomNook.
    @TomNook. День назад +18

    Its hard to compete with BlackRock buying up houses

    • @krztaz3
      @krztaz3 День назад +3

      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..😅

  • @JuanDiazSilvermyst
    @JuanDiazSilvermyst День назад +17

    None of this matters if corporations out bet the sales and turn them into rental units.

    • @mikebostic9518
      @mikebostic9518 День назад +1

      High rates from the fed haven't helped but so is the lack of affordable housing.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад +1

      So what? If you had the money I'm sure your landlord will sell to you

    • @setcheck67
      @setcheck67 19 часов назад

      @@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.

    • @bobmcbobbington9220
      @bobmcbobbington9220 4 часа назад

      Rent or buy, supply and demand is the same.

  • @123biggame
    @123biggame 22 часа назад +3

    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.

  • @kkadam96
    @kkadam96 День назад +7

    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.

    • @richiestarks6163
      @richiestarks6163 День назад

      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.

    • @rondas7772
      @rondas7772 День назад

      This is very true

    • @kyeorlam1351
      @kyeorlam1351 20 часов назад +1

      I guess only people who doesn't own a house like me getting stuck renting in California and can't relocate.

    • @SFelectrolysis
      @SFelectrolysis 17 часов назад

      @@kyeorlam1351you got to save to get a good down payment, and find a home in a cheaper area to buy,

    • @richiestarks6163
      @richiestarks6163 9 часов назад

      @ 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.

  • @XingpingLu
    @XingpingLu 21 час назад +1

    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.

  • @jrho8033
    @jrho8033 День назад +8

    The simplest solution is to BUILD more DENSE housing preferably near public transit. And put a stop to Corporate landlords. It won't solve the whole housing crisis, but it very much will help address it.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      Both will go bankrupt immediately. I bet the lives of everyone on this thread

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      This id10t thinks the average landlord is a megacorp

    • @rathelmmc3194
      @rathelmmc3194 День назад +1

      People don’t want that, and you see it in the birthrates.

    • @rondas7772
      @rondas7772 День назад

      Obviously you don't live in a large city

    • @byronbuck1762
      @byronbuck1762 21 час назад

      @@jrho8033 yes. That is a cheaper and more efficient way to create housing. At the end of the day,it’s a simple supply and demand problem

  • @warbearin
    @warbearin 2 часа назад +1

    0:33 «cost jumps by.. a lot» what kinda reporting is that? Bro could have said % or “over doubles” at the very least. “A lot” sounds amateur.

  • @JohnAdams-vd5dc
    @JohnAdams-vd5dc День назад +28

    Simple. It's corporate greed.

    • @ajr993
      @ajr993 День назад +9

      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

    • @sportsfan1717
      @sportsfan1717 День назад +5

      "Corporate greed" or "President I don't like" is actually not the answer to all economic issues like the majority of Americans believe.

    • @staticpurge
      @staticpurge День назад

      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.

    • @byronbuck1762
      @byronbuck1762 День назад

      Corporate buyers are 5% of the market, so no. It’s supply and demand. We have under built housing for thirty years.

  • @thegzak
    @thegzak 6 часов назад

    In the Netherlands you can transfer your existing mortgage to another property, so you’d only need to take a new loan at today’s higher rates for whatever your old loan doesn’t cover after transferring. Kind of a great solution to alleviating the lock-in effect where people don’t want to sell because they don’t want to give up their old rates.

  • @user-ms3ko5gn8e
    @user-ms3ko5gn8e День назад +3

    Record high house prices make it impossible for first time home buyers. Everything has gone up besides average people's wages!

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      Liar

    • @DMAN590
      @DMAN590 День назад

      ​@@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

    • @user-ms3ko5gn8e
      @user-ms3ko5gn8e 22 часа назад

      @samsonsoturian6013 Shut up you must be rich so it doesn't affect you!

  • @pearsonhsmith
    @pearsonhsmith День назад +2

    Housing prices never go down, they always go up. Now is always the best time to buy a home. In this political landscape, regulators won't do anything sensible and it'll take ages to get regulations passed so it's up to wages to go up. The best thing an individual can do is find a job that pays more or ask for a raise. That's makes the job market competitive for talent, hence raising wages. If you work under a union, bring up the cost of living when negotiating contracts.

    • @TG-qr6kd
      @TG-qr6kd День назад +1

      That was so dumb my brain hurts now

    • @byronbuck1762
      @byronbuck1762 21 час назад +1

      @@pearsonhsmith nonsense. Housing prices go down frequently and sometimes by a lot. They dropped fifty percent in my city in the 2008 recession. I’ve owned six homes over the years. Two I sold for less than I paid, one I broke roughly even on and two went up. Number six isn’t going up attm.

    • @greenbean9135
      @greenbean9135 19 часов назад +2

      You sound like a realtor lol

    • @flamingosedai1820
      @flamingosedai1820 19 часов назад

      @@byronbuck1762 So what you're saying is we need another housing crash? good! They cost way too much as it is.

    • @byronbuck1762
      @byronbuck1762 7 часов назад

      @ no. What I’m saying is we need to build more houses. It is a supply and demand problem

  • @zacktastick8
    @zacktastick8 День назад +7

    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.

    • @AChillin01R
      @AChillin01R День назад +2

      Especially for homes that have not even been upgraded. lol

    • @Galworld761
      @Galworld761 День назад

      This does not immediately impact your mortgage rate. Your mortgage rate is the cost to borrow. Low mortgage rates increase home prices.

    • @byronbuck1762
      @byronbuck1762 21 час назад

      @@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.

  • @bnwo
    @bnwo День назад

    3:55 Weaker economic data means the buyers who can't buy now because they are looking for more affordability are in an even more precarious financial position, so how does that help people who already can't get into a home?

  • @EatMyStarfish
    @EatMyStarfish День назад +7

    26% paid in cash!

    • @Jecoopster
      @Jecoopster День назад +3

      Yeah that’s nuts!

    • @Eddy-ov4tx
      @Eddy-ov4tx День назад +7

      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

    • @jonathantaylor6926
      @jonathantaylor6926 День назад

      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.

  • @daminh9245
    @daminh9245 17 часов назад +1

    The real culprit is the prices of the homes, not the mortgage rates.

  • @rickhayes-oh2zm
    @rickhayes-oh2zm День назад +4

    they are going up. look up inflation

  • @tarekmoustafa2126
    @tarekmoustafa2126 7 часов назад

    Let’s see what’s going on:
    1. The FED is selling MBS effectively pushing rates up due to increased supply
    2. The Fed historically low rates and quantitative easing caused an insane increase in housing prices and a lock in effect that might take decades to resolve.
    3. The government is borrowing insane amount of money through treasuries which pushes demand away from MBS effectively increasing rates
    4. Hedge funds are buying whole new developments in cash which actually one of the reasons behind the historic cash rate.
    The solution seems to be Fed should lower its rates and just hold onto its MBS without selling them, the government should lower its new debt to lower supply of treasuries pushing demand into other parts of the market including MBS, and finally the government should lock away any federal, state and local funding as well as tax benefits for hedge funds buying non commercial buildings and builders selling above a certain percentage to them.

  • @arodriguez2707
    @arodriguez2707 День назад +10

    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.

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      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

    • @DMAN590
      @DMAN590 День назад +1

      ​​@@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

    • @samsonsoturian6013
      @samsonsoturian6013 День назад

      @@DMAN590 liars get scalped

    • @DMAN590
      @DMAN590 День назад

      @@samsonsoturian6013 I'd be looking over your shoulder then.

    • @DMAN590
      @DMAN590 23 часа назад

      @@samsonsoturian6013 Ironic thing for you to say

  • @harrishistoria
    @harrishistoria 23 часа назад +1

    Simple answer…they aren’t. Part of this mess we are in is due to how artificially low they were.

  • @AnshMeta-j7r
    @AnshMeta-j7r День назад +3

    Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?

    • @Fahima9Tazin
      @Fahima9Tazin День назад

      There are options that spread across multiple banks. I use a non-beginner broker that protest up to 3 million dollars and provide 4.58% returns on cash, it's always a good idea to consider working with an advisor for financial planning

    • @JohnMatthew-hq3xs
      @JohnMatthew-hq3xs День назад

      Agreed, financial advisors play a key role in portfolio allocation and i've been using one since late 2019 just before rona outbreak. So far, I'm barely 25% short of $1m ballpark goal after subsequent investments.

    • @SallyW414
      @SallyW414 День назад

      Please excuse my curiosity, would you mind sharing more info on your advisor? I’m in dire need of guidance

    • @JohnMatthew-hq3xs
      @JohnMatthew-hq3xs День назад

      Finding financial advisors like Vivian Jean Wilhelm who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

    • @JohnMatthew-hq3xs
      @JohnMatthew-hq3xs День назад

      Credits goes to Vivian Jean Wilhelm one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

  • @Weathernerd27
    @Weathernerd27 22 часа назад +1

    I bought a condo in 2021, it was all I could afford at a 3% interest rate making 80k a year. I will be selling it soon because I can't stand the HOA. At 38 I'm getting too old to have a large loan balance, a mortgage isn't worth it if its not paid off or close to paid off when I retire around age 60. I probably won't make enough profit to have a reasonable loan/payment on my next place so I will be leaving the housing market and not getting back into it. I've done the calculations and I'm better off renting a really cheap place and investing the proceeds in index funds, I'll get just as good a return but I won't have the risk of huge HOA assements. Have these greedy idiots thought about what will happen if people don't want to buy houses? If landlords go crazy well I know how to be homeless and hold a full time job I've done it before and will do it again if I have to.

  • @brianhill8974
    @brianhill8974 День назад +3

    Feel unaffordable?😂😂😂 How about are unaffordable for average people

    • @Prod1jbtc
      @Prod1jbtc 18 часов назад

      It’s because of mortgage rates. People keep saying it’s the price of the home, but people don’t get that houses are an appreciative asset for the most part. Houses usually just keep up with inflation, so you can make the argument they don’t even really go up in value. It’s the purchasing of your money that you save becomes weaker making it even harder to buy something that has a higher inflated value due to inflation.

  • @adambartlett2780
    @adambartlett2780 3 часа назад

    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.

  • @AnnistonMahaffy
    @AnnistonMahaffy День назад +3

    Don’t worry. The elites are on watch. It might take a while. But eventually you’ll get people like Luigi Mangioni

  • @KishTalksCredit
    @KishTalksCredit 12 часов назад +1

    Yes, rates are going to stay higher for longer. 😮

  • @patrickpowell601
    @patrickpowell601 День назад +3

    Didn’t they just cut interest rates a few months ago. Shouldn’t we wait a little to see the changes start kicking in

    • @AChillin01R
      @AChillin01R День назад +3

      It will change very little.

    • @jonathantaylor6926
      @jonathantaylor6926 День назад

      It changes instantly. The 10 year up 10 basis points today which is a significant move. You will see higher mortgage rates by the end of the week.

  • @gentlegiant4067
    @gentlegiant4067 17 часов назад

    For everyone wondering why this is, corporations figured out that they can just raise prices and keep interest high and people will still buy. Why would you ever incentivize lower interest rates? If every bank keeps interest rates high, everyone wins except the people of course.

  • @alexanderson4849
    @alexanderson4849 День назад +4

    First

    • @imakedookie
      @imakedookie День назад +1

      Wow you did it! Excellent work, keep it up champ i believe in you!

  • @PicktheLotto
    @PicktheLotto 20 часов назад +2

    Why is there such a disconnect between Fed rates and mortgage costs? 🤔🏡

  • @Jinchuricki27
    @Jinchuricki27 День назад +3

    Is this serious? Are you guys seriously asking why mortgages are so expensive? WTF

    • @ajr993
      @ajr993 День назад +2

      Yeah because it's complex interesting topic. And no, it's not corporate greed before you regurgitate some emotional talking point you heard

    • @AChillin01R
      @AChillin01R День назад

      @@ajr993 How is it corporate greed not playing a part in it?

  • @salv02
    @salv02 2 часа назад

    Companies like AVB love this since it lets them buy more land, build strictly rental units, and keep more tenants

  • @SP-ve1im
    @SP-ve1im 21 час назад

    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...

  • @alexriva3402
    @alexriva3402 День назад

    This is why single family rentals and built to rent communities are thriving, home ownership without all the costs. Taxes, INS, HOA, maintenance, Mortgage Payments. Yes rents are high because of it. Rent for 5 years, when things return to normal, and you get the feeling of living in a home and not some crappy apartment or parents house, and you get a yard(more privacy), Only problem to this is they are located away from the city due to high land prices the closer you go towards a city.

  • @thomasridley8675
    @thomasridley8675 19 часов назад +1

    The housing market was broken way before 2020.
    Low wages and maximizing profits is not sustainable. Your home is worth more, but with fewer qualified buyers available.

  • @blazejon
    @blazejon День назад

    QE was always a huge unknown when these programs started more than 10 years ago. There's always hind sight "I wish I bought more house," but in the end I think it's a good thing that the real risks of buying a home are more apparent and less subsidized by the Fed. This is reality...

  • @jerseys89finest
    @jerseys89finest День назад +1

    Force companies that own property to pay their employees 3 times rent minimum. That would discourage them from wanting to own it. Leave home to the people

  • @Diverse0725
    @Diverse0725 День назад +1

    Translation: because of greed, we're not gonna be changing the interest rates on mortgages anytime soon, so why not get an ARM instead? Maybe that will help 🤷🏿‍♂️
    I'll pass

  • @MarkSenatori
    @MarkSenatori 16 часов назад

    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

  • @ryans7097
    @ryans7097 11 часов назад

    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.

  • @PicktheLotto
    @PicktheLotto 20 часов назад +1

    What alternatives do buyers have in this market? 🏠💡

  • @flailinginhalers
    @flailinginhalers 5 часов назад

    Why were rates so low back in 2020 when there were 20 offers on every house? By 2012, it was really obvious that the market had recovered from the crash. They should have been slowly rising, which they were doing until around 2017-18. Then they started dropping again. Never made any sense to me.

  • @dmatthews077
    @dmatthews077 7 часов назад

    Short-sighted policies have just allowed the wealth gap to widen further. The government needs to put more restrictive policy and taxes that will deter owning over a certain number of homes, and make sure that there are not simple loopholes for corporations (don't punish small business as much). There are a number of solutions to these problems. Update first time home buyer programs to give a slightly better rate as long as they meet certain criteria (e.g. credit 700+, 10% down, steady employment, etc.), so the middle class can afford a home (e.g. .5 % - 1% less for length of loan, or 1% - 2% less for the first 5 years as long as they qualify for the full rate at the time of application; and fixed rate based on current rate after). First time home owners reduced rates would not impact the market that heavily as they are already heavily disadvantaged - according to the National Association of Realtors, first-time homebuyer market share decreased to a historic low of 24% (down from 32% last year).

  • @gabrielrichardson5626
    @gabrielrichardson5626 11 часов назад

    Great video with simple technical definitions

  • @pinkisforpimps
    @pinkisforpimps Час назад

    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

  • @michellegreen1072
    @michellegreen1072 6 часов назад +1

    9:03 The Feds haven’t been inactive since they started. 😂😂😂😂😂

  • @Tonehawkdawg
    @Tonehawkdawg 17 часов назад

    Everyone but the Fed sees how high inflation truly is. Houses are ridiculously expensive, yet continue to go up 4-8% a year. Mortgage rates need to go to 10%+ to stop this inflation. Bond market sees this,

  • @truthtable888
    @truthtable888 18 часов назад

    The policy should be revised so that individuals are allowed to purchase land directly from developers. Currently, they are only selling multiple lots exclusively to builders.

  • @newtec-kd6vy
    @newtec-kd6vy День назад +1

    Get rid of the central banks

    • @InspireMe819
      @InspireMe819 23 часа назад

      Bitcoin and Crypto is trying to do that.

    • @newtec-kd6vy
      @newtec-kd6vy 22 часа назад

      @ no it’s not.

  • @JasonMasque13
    @JasonMasque13 11 часов назад +1

    I had no money in 2007. I wish I could have bought a shack then.

  • @joshlother9180
    @joshlother9180 23 часа назад

    The question must be asked: if the Gov, via some means, ends up back stopping mortgages through the market, why is it not directly funding the mortgage in the first place?

  • @aquint5554
    @aquint5554 19 часов назад

    In this market, upsizing means building on your existing home. Gone are the days of ppl moving. This will also push values up. Inventory needs to increase dramatically