The REAL Reason Mortgage Rates Are Rising
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- Опубликовано: 19 май 2024
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Please do not forget the little details ie property insurance, HOA fees, property taxes.
And watching real estate channels, a lot of builders aren’t showing their entire inventory of available homes to hide their trouble selling.
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.
At this point, I just might as well learn how to build a house
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.
LMFAOOOO real talk
@@timg1099they don’t make manufactured homes as good as they used to. Just build something simple like a barndominium.
@@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
Just live in your car and save
It’s scary how much you pay the bank in interest over 30 years vs 15 year mortgage
Mortgage rates are not going BELOW.
Some owners will be going BELOW, though.
@@KelssinhoTHIS❗️‼️
Great time to consider minimalism.
YES. i OWN my house bc of minimalism. BUt i was practicing that for many years
Builders are not paying for any buydowns 😂 that cost if baked into the price, the issue is NOT the rate is the price
Mortgage rates are rising and the prices too!
Always great information Jaspreet
You explain everything simply and logically
Thanks for the lesson, J!
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.
Exactly
New homes are giant monstrosities or expensive condo-fee patio homes on a slab. Both incredibly unappealing and soulless
I have noticed this also.
Agenda 21.. Doesn't care.
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).
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.
Don't buy until housing bubble pops.
Wow thank you I always wondered why they won’t just lower their prices
Great video do you have any advice in buying that as well?
Thank you.
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".
What about closing costs? I heard recently, they proposed a bill to reduce closing costs for both parties
Jaspreet, wen do they start printing the $100 Trillion dollar bank notes?
should there not be regulation against price gouging in the residential space?
The key is to STOP buying. Wait a couple of years and the rates will come down along with every high cost item.
Maybe
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.
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.
NO. I want interest rates to stay high but home prices to come down.
You think if rates go down the prices of homes will go down too LMAO. You must be a delusional non home owner.
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.
Very clever! 😮
im just going to get a construction loan and building my own home. lol
Seems like a good idea
You beat me to it.
We need to protect this man at all costs! Such valuable information and the morning briefs are the best thing since sliced bread!
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.
This is by far the best explanation I’ve heard
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.
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.
Well, you have gov spend big and give handouts - how is that not going to keep inflation up
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.
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.
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.
Wow I like this guy.
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.
So builders ae becoming POSs, noted. I see a nice bubble in the making with that strategy.
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.
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We are stuck. Inflation or high interest rates. No other way round it.
The government gets a good amount of them and sells them to buyers at a cut rate.
I do think mortgage rates will drop.... one day, but I think home prices will go even higher.
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
Then need to go to 10% then maybe reality will set back in
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.
Just pay cash
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
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.
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.
Because bankers like the new Bugatti?
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.🤷🏻♂️
Builders already building smaller homes to lower costs. Even MULTIGENERATIONAL offerings in houses. More people in a home to handle costs
Some younger adults moving back with parents to save money
An example of lending money to the broke cousin Bundy made my day 🤣🤣
He does sound like a nice chap
United States government at this time is like my cousin Bundi. They look like twins 😅
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 ...🤣🤣🤣🤣🤣
Because you lot are in the rob
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.
BLOWWWW
Why canwe not just borrow from the government at 5.4 % vs paying more to the bank
Not mine bishes I’m at 2.8% and holding 😅
Buffet just dumped apple stock. Nothing seems safe at this time. Gold is the only viable asset to hold
“you will own nothing!”
We will all be rich do you believe this? Then take action now!
First to comment
They want you to live on the streets.
4th to comment
This guy takes forever to get to the point of his video titles; tired of this guy's videos
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 🤣