Mortgage Rates Hit Their Highest Level Since 2001
(00:00.714)
Ouch! Mortgage rates. Woo-wee! Two decade high. Holy shnikes. Average 30-year fixed mortgage interest rate 7.23%. Wow. Yeah. Two years ago, borrowing rates were below 3%. Below 3.
Percent now again, you know, you’re talking about hundreds of thousands of dollars more In interest at this point in time. What is this doing to the overall real estate market? What does this mean? Basically the conveyor belt We want to call it that of housing houses that came on the market and off the market is just stopped
It’s just stopped. And the reason being, quite frankly, is that when people have a mortgage rate below 3% and all of a sudden, you know, they see it at over 7%, they say to themselves, I ain’t going anywhere. I’m not going anywhere. Existing home sales are not, they’re gonna be very, very sticky. That conveyor belt has been shut.
off simply due to the speed of the Fed and these interest rate hikes, which is, you know, at this point in time, it’s gotten nonsensical because they haven’t, you know, the important things we talked about the bear necessities inflation, they really haven’t done a damn thing about it. They can applaud the CPI all you want, but good luck now. Good luck now trying to find a home. We don’t have the inventory that’s out there. Home builders are going to continue to build.
they’re gonna be pricing their houses at a hell of a lot less, which is fine. Just fine, they’re gonna have to make adjustments. It is what it is. But to have rates go to this parabolic pace and for whatever reason it may be, like I said, you get all these Wizard of Smart Jackson Hole types. They’re all meeting there, all these Federal Reserve people. One of the most important things when it comes to inflation is housing costs and they’re just driving them up.
(02:30.05)
They’re driving them up. Now some solutions that we could come up with when it comes to these high mortgage rates. And again, I don’t know who would have to get involved with this, whether it be Fannie and Freddie or how you can go about handling this is to actually make mortgages in of themselves be transferable to the new buyer of a home.
What do I mean by that? In essence, if I have a mortgage on my house, I have a mortgage on my house and my mortgage rate is below 3% and I wanna sell my house, wanna sell my house, I wanna move, but I still have the mortgage rate, I still owe just a certain amount of money on it. Allowing that mortgage and that mortgage rate to be transferred to a new buyer.
Obviously they would have to qualify and you know, do all the jump through all the same you know hoops and whatnot that everybody else had to I think that might be a an Option if they could put it together In regards to loosening up the market to some degree, but we shall see as it stands right now It’s you know, your real estate agent gonna have a difficult time doing any business at right now that’s for darn sure watchdog on wallstreet.com.
