The REAL Reason Mortgage Rates Are Rising

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  • Опубликовано: 19 май 2024
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Комментарии • 133

  • @MinorityMindset
    @MinorityMindset  15 дней назад +2

    Register for my free Stock Market Mastery workshop: briefs.co/smmworkshop
    WARNING: LOOKOUT FOR SCAMS IN THE COMMENTS!
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  • @craiglarge5925
    @craiglarge5925 14 дней назад +10

    Please do not forget the little details ie property insurance, HOA fees, property taxes.

  • @powerofme7144
    @powerofme7144 15 дней назад +35

    And watching real estate channels, a lot of builders aren’t showing their entire inventory of available homes to hide their trouble selling.

    • @winniethepoohandeeyore2
      @winniethepoohandeeyore2 13 дней назад +2

      Alot of builders are building build to rent not build to own, A lot of developers who were building build to own aren't getting the people needed to sell, so they just said screw it, finish the builds and rent them out.

  • @bigd3721
    @bigd3721 15 дней назад +76

    At this point, I just might as well learn how to build a house

    • @timg1099
      @timg1099 15 дней назад +11

      You know...I was seriously thinking about just buying land and throwing a trailer on it or whatever. Maybe even live in a home depot shack.
      I just can't justify paying this amount of crap for a house.

    • @freco1292
      @freco1292 15 дней назад +4

      LMFAOOOO real talk

    • @huemann7637
      @huemann7637 15 дней назад +3

      @@timg1099they don’t make manufactured homes as good as they used to. Just build something simple like a barndominium.

    • @NotUrShadow
      @NotUrShadow 15 дней назад

      @@timg1099 No lie, it is so difficult to buy land and live on it (with all the permits and such you gotta get) it MIGHT actually be easier to try and buy the house lolol

    • @mrxiong2567
      @mrxiong2567 15 дней назад +1

      Just live in your car and save

  • @Starship007
    @Starship007 15 дней назад +16

    It’s scary how much you pay the bank in interest over 30 years vs 15 year mortgage

  • @markamark123
    @markamark123 15 дней назад +28

    Mortgage rates are not going BELOW.

    • @Kelssinho
      @Kelssinho 15 дней назад +8

      Some owners will be going BELOW, though.

    • @MsMaxinejoy
      @MsMaxinejoy 15 дней назад

      ​@@KelssinhoTHIS❗️‼️

  • @seanodaniels397
    @seanodaniels397 15 дней назад +15

    Great time to consider minimalism.

    • @Ascendsean35
      @Ascendsean35 14 дней назад

      YES. i OWN my house bc of minimalism. BUt i was practicing that for many years

  • @Therealsupremeleader
    @Therealsupremeleader 15 дней назад +21

    Builders are not paying for any buydowns 😂 that cost if baked into the price, the issue is NOT the rate is the price

  • @lilpandanesegirl
    @lilpandanesegirl 15 дней назад +9

    Mortgage rates are rising and the prices too!

  • @salomonquijada7144
    @salomonquijada7144 15 дней назад +4

    Always great information Jaspreet
    You explain everything simply and logically

  • @tinyhauslife
    @tinyhauslife 15 дней назад +3

    Thanks for the lesson, J!

  • @coreyburke3493
    @coreyburke3493 12 дней назад +2

    I think its important to acknowledge that the current rates are closer to being historical averages than being high rates. A zero fed rate isn't normal.

  • @vikker8274
    @vikker8274 15 дней назад +14

    New homes are giant monstrosities or expensive condo-fee patio homes on a slab. Both incredibly unappealing and soulless

  • @natebredeweg5351
    @natebredeweg5351 15 дней назад +8

    8:50 is where the meat of this concept starts. I typically skip ahead in the video these days (feedback: get to the point sooner).

  • @DoubleJabSlipRightHand
    @DoubleJabSlipRightHand 13 дней назад +5

    In NYC and Long Island the absolute LOWEST you're going to pay for a half decent house in a half decent area is around 450k. So by your rules, you'll need around $90k to put down plus closing costs which are usually like $20k-30k. Who the hell has $120k just sitting around? And to keep your mortage under 25% of your income, after taxes, you'll need to make upwards of $200k a year. Who are these rules for? Clearly not the average American. And if you say you're not ready to buy a home yet, your only other option is to rent. The lowest you'll find a 1 bedroom is around 2k a month. Even if you have a decent salary of around 80k-100k a year, it'll take you at least 10 years to save up 120k for a down-payment. By then, you would need more like $160k.

  • @mrxiong2567
    @mrxiong2567 15 дней назад +5

    Don't buy until housing bubble pops.

  • @bernieayala
    @bernieayala 15 дней назад +3

    Wow thank you I always wondered why they won’t just lower their prices

  • @kedargraham3121
    @kedargraham3121 15 дней назад +1

    Great video do you have any advice in buying that as well?

  • @wandafrazier5206
    @wandafrazier5206 15 дней назад

    Thank you.

  • @saiga12forme88
    @saiga12forme88 15 дней назад +2

    I don't know what areas these builders are paying interest out of their pocket but our area we still have a line of people for every house going on the market. And to cut 30K "out of your profit" on a 500k house, that would be ALL the profit on that house not including overhead. Sounds like a bunch of fluff. If anything they're probably throwing an extra 30k on something and using that gimmick that they'll "pay for it out of their pocket".

  • @whatsittoyou
    @whatsittoyou 15 дней назад

    What about closing costs? I heard recently, they proposed a bill to reduce closing costs for both parties

  • @cryptoesquire3168
    @cryptoesquire3168 15 дней назад

    Jaspreet, wen do they start printing the $100 Trillion dollar bank notes?

  • @sumitkapur9479
    @sumitkapur9479 9 дней назад

    should there not be regulation against price gouging in the residential space?

  • @is4life862
    @is4life862 15 дней назад +62

    The key is to STOP buying. Wait a couple of years and the rates will come down along with every high cost item.

    • @AndyDufresne4
      @AndyDufresne4 15 дней назад +15

      Maybe

    • @terrylewis9040
      @terrylewis9040 15 дней назад +6

      Exactly,4life.And that's theoretically what the Fed is trying to get people to do-- us we got to have it now,unable to delay gratification Americans-- but it doesn't seem to be happening especially in places like Texas where I'm writing.This is why they didn't lower rates this week and probably won't anytime soon.

    • @MrDee001
      @MrDee001 15 дней назад +9

      The issue is not "us" buying the houses in mass. It's corporations with cash on hand that buy the instant rates start to go down.

    • @mrxiong2567
      @mrxiong2567 15 дней назад +12

      NO. I want interest rates to stay high but home prices to come down.

    • @kevinnguyen8552
      @kevinnguyen8552 15 дней назад +9

      You think if rates go down the prices of homes will go down too LMAO. You must be a delusional non home owner.

  • @mandypdx
    @mandypdx 6 дней назад

    I got a 5% closing credit from my builder… i got to choose if i wanted it to go towards my downpayment or buy down the rate, or a combo of the two.

  • @esthercorreia5106
    @esthercorreia5106 15 дней назад

    Very clever! 😮

  • @lilpandanesegirl
    @lilpandanesegirl 15 дней назад +7

    im just going to get a construction loan and building my own home. lol

  • @tonyherdina9142
    @tonyherdina9142 15 дней назад +1

    You beat me to it.

  • @alberokadaa8354
    @alberokadaa8354 12 дней назад

    We need to protect this man at all costs! Such valuable information and the morning briefs are the best thing since sliced bread!

  • @reallife4910
    @reallife4910 15 дней назад +1

    My question is when interest rate drop would demand be high, the way the economy is going spending like crazy saving is down, do Americans have money when interest rate goes down.

  • @maxdanielstrauss7735
    @maxdanielstrauss7735 15 дней назад +2

    This is by far the best explanation I’ve heard

  • @cburgher1747
    @cburgher1747 15 дней назад +1

    Actually the Federal Open Market Committee is responsible for setting interest rates. Also, as always, thank you for sharing your knowledge. Has recently become one of channels that has been a part of my daily learning.

    • @poonekar
      @poonekar 15 дней назад +1

      If that was true can you explain why the mortgage rate has varied so much in the past few months while the Fed rates have stayed fixed? It is because the mortgage rates are closely related to, but not equal to, the US 10y rate. There is difference between the US10y and mortgage rate that is called the “spread”. This spread varies depending on several complex factors that boil down to uncertainty, fear and greed in the market.

  • @howardlee5235
    @howardlee5235 14 дней назад

    Well, you have gov spend big and give handouts - how is that not going to keep inflation up

  • @stevemouton7531
    @stevemouton7531 13 дней назад

    From what I’m understanding, we’ll most likely see a crash when the temporary buy downs catch up to home buyers, I.e. the payment goes up to where homeowners can no longer afford the mortgage payments. The temporary buy downs sounds like ARM.

  • @davidthomas8113
    @davidthomas8113 15 дней назад

    My observation. US government has to raise yields because investors are getting better returns in other markets (stock market for example). But when the global market become more upstabe (global recession) . Investors will look for a safe place to park their funds (usually the US government) which reduces yields because of higher demand. The question is will the US still be considered the safest place to invest in the future.

  • @bun-n-cheese1290
    @bun-n-cheese1290 14 дней назад +1

    Sucks because I bought in 2016 at a great rate and below market in the home. Lost it in divorce without any of the of the 250K of equity. Now I wont be ready to buy again until around 2030 and its going to cost a freaking fortune.

  • @craigm7240
    @craigm7240 2 дня назад

    Wow I like this guy.

  • @nathanmrudd
    @nathanmrudd 7 дней назад

    Ask for $30k of paid for improvements or additions on the example $500k sale. The comps remain the same and you benefit from the value of the improvements and still get the benefit of paying off the loan faster and possibly refinancing to a lower rate in the future.

  • @lonely0takulive828
    @lonely0takulive828 15 дней назад

    So builders ae becoming POSs, noted. I see a nice bubble in the making with that strategy.

  • @free_electron
    @free_electron 9 дней назад

    Builders don’t GAF about your interest rate and will find a buyer that won’t require a builder buydown and will purchase at full price because demand still out paces supply and new houses are always in demand. No builder that survived covid is going to eat into their profit margin in this market. Any rate buydown will be from your own cash reserve as additional closing costs. Anyone thinking of a temporary buydown needs to realize property taxes are skyrocketing which can quickly cause issues if your mortgage rate is also increasing annually. Long story short demand for housing is driving up costs which drives up inflationary pressure which in turn drives up costs.

  • @richhands5269
    @richhands5269 15 дней назад +13

    My three favorite channels: Minority Mindset, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

  • @kenthammer123
    @kenthammer123 14 дней назад

    We are stuck. Inflation or high interest rates. No other way round it.

  • @markmurphy3177
    @markmurphy3177 15 дней назад +1

    The government gets a good amount of them and sells them to buyers at a cut rate.

  • @focused313
    @focused313 10 дней назад

    I do think mortgage rates will drop.... one day, but I think home prices will go even higher.

  • @jonathansanchez8499
    @jonathansanchez8499 15 дней назад +1

    Hah! Im seen people go into house payment of 45%+ of they take home pay. This shit is sad and crazy. People really going house poor. To get a house at this times

  • @marksgoogle4360
    @marksgoogle4360 15 дней назад +2

    Then need to go to 10% then maybe reality will set back in

  • @holycameltoe124
    @holycameltoe124 15 дней назад +1

    You often claim the fed prints money. How do they do though? All they can do as far as I know is create bankreserves which they then swap for treasuries with banks. So please explain how that is money printing. Or if they have other ways to do so please explain how the fed actions create more dollars chasing goods and services in the real economy.

  • @ElNetito0796
    @ElNetito0796 14 дней назад

    Just pay cash

  • @dougg4633
    @dougg4633 15 дней назад +4

    The goal is to OWN Your Home .
    Start be saving , buy a "starter" home , buy below your means, buy a great deal, improve the house.
    Do this multiple times each time, reinvesting the equity upgrading to your final "dream" home

    • @coreyburke3493
      @coreyburke3493 12 дней назад +1

      I'd say there's a problem with this method. Starter homes are not always available.
      Flipping homes takes starter homes off the market as well as new homes being built are all huge. Then there are people selling their old home that they upgraded previously in order to gain as much as possible.
      So in many markets even if you find a fixer upper it's priced almost the same as a nice house.

  • @Starship007
    @Starship007 15 дней назад +1

    Buy LESS home vs More. Qualify on one persons income not Two. Do not be married to your mortgage as stocks a better investment as homes require maintenance/repairs.

  • @HAIDARAVEN
    @HAIDARAVEN 15 дней назад

    Because bankers like the new Bugatti?

  • @stevelozano9523
    @stevelozano9523 15 дней назад

    Treasuries are strong backed by the stongest government?
    Well, would a bank loan anyone money that can't control spending and is in the whole by tillions, Also hearing the dollar is loosing its steam?
    I wouldnt trust lending gov in trade for treasuries, but who am i to say.🤷🏻‍♂️

  • @Starship007
    @Starship007 15 дней назад

    Builders already building smaller homes to lower costs. Even MULTIGENERATIONAL offerings in houses. More people in a home to handle costs

    • @Starship007
      @Starship007 15 дней назад

      Some younger adults moving back with parents to save money

  • @vadymsalyuk8159
    @vadymsalyuk8159 15 дней назад +1

    An example of lending money to the broke cousin Bundy made my day 🤣🤣

    • @RE-jb2ke
      @RE-jb2ke 15 дней назад

      He does sound like a nice chap

  • @slimj5761
    @slimj5761 14 дней назад

    United States government at this time is like my cousin Bundi. They look like twins 😅

  • @Basics-HQ
    @Basics-HQ 13 дней назад

    At this point, I just might as well learn how to build a house ... i will be in my rural home... with my starlink internet ...solar pannel, borehole ...living in the city is scam now ...🤣🤣🤣🤣🤣

  • @Rosiedelaroux
    @Rosiedelaroux 15 дней назад +1

    Because you lot are in the rob

  • @jackgoldman1
    @jackgoldman1 15 дней назад +1

    Used furniture a great deal. In the 1950's people bought a house, had no furniture, and saved up to get furniture or got used.

  • @cambainc05
    @cambainc05 14 дней назад +1

    BLOWWWW

  • @sunnybedi4606
    @sunnybedi4606 14 дней назад +2

    Why canwe not just borrow from the government at 5.4 % vs paying more to the bank

  • @GJH3735
    @GJH3735 13 дней назад

    Not mine bishes I’m at 2.8% and holding 😅

  • @goneviral8814
    @goneviral8814 14 дней назад +2

    Buffet just dumped apple stock. Nothing seems safe at this time. Gold is the only viable asset to hold

  • @cherbug1197
    @cherbug1197 11 дней назад

    “you will own nothing!”

  • @Dangote_jnr
    @Dangote_jnr 15 дней назад +2

    We will all be rich do you believe this? Then take action now!

  • @Dangote_jnr
    @Dangote_jnr 15 дней назад +1

    First to comment

  • @Discovery123.
    @Discovery123. 15 дней назад

    They want you to live on the streets.

  • @ENSJazzBandLive
    @ENSJazzBandLive 15 дней назад

    4th to comment

  • @888strummer
    @888strummer 15 дней назад +2

    This guy takes forever to get to the point of his video titles; tired of this guy's videos

  • @disneytakeshugedix7463
    @disneytakeshugedix7463 15 дней назад +5

    America 🇺🇸 loves 🥰 Hyper Inflation 💸 and will continue to print money 💵 and lower interest rates until the US 🇺🇸 Dollar 💵 collapses ! The American 🇺🇸 Government loves 🥰 Hyper Inflation 💸 so much they want the prices of everything to rise until the US 🇺🇸 Dollar 💵 is worth nothing ! Print ! Print ! Print ! Ha ! Ha ! Ha ! Hilarious 🤣