BIG Drop in Mortgage Rates as Silicon Valley Bank Collapses

After the collapse of Silicon Valley Bank which caused a stock sell off (Dow Jones fell 1.07% on Friday 3/10/23). This was the biggest bank failure since 2008 and caused the yield on the 10yr Treasury to drop to 3.7%. In turn, mortgage rates fell as well. According to the Mortgage News Daily, average 30yr fixed rates decreased to 6.76% on Friday (down 29bps since Thursday). If this downward trend in rates continues, that could cause homebuyer demand to rise once again. Time will tell and I’ll keep you posted!

Thank you for watching the video! I appreciate you. Like and subscribe!

➜➜➜ Get Connected To a GREAT Real Estate Agent in Your Area

Compilation of Housing Market Forecast videos:

To give you a quick mortgage interest rates update, according to the Mortgage News Daily the average 30yr fixed rate mortgage is around 6.76% for the current mortgage rates (at the time of filming this video for those with excellent credit).

Comment below: what’s your housing market forecast? Do you think a housing crash will happen or are your housing market predictions that the real estate market and home prices will continue to surge?

----------------------------------------------------------------------------------
Products I use and like: ad

***
Jason Walter, CPA (lic 103885)
Sacramento real estate agent and native
Realty ONE Group Complete (DRE 01923240)

➜➜➜ SUBSCRIBE FOR MORE VIDEOS ➜➜➜

➜ PLAYLIST: Videos about Living in Sacramento

Moving to Sacramento? Top 10 Reasons to Move Here:

5 Pros & Cons of Living in Sacramento:

Royalty Free Music from Bensound

Disclaimer:
Jason Walter is not a practicing tax accountant or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video - it is for entertainment purposes only.

This video description may contain affiliate links that allow you to easily find the items mentioned in my videos as well as support the channel at no cost to you. Thank you for your support! Jason Walter is a licensed real estate agent with Realty One Group in California under DRE 01923240.

#realestate #mortgagerates #housingmarket

[JasonWalter]

Looking to buy or sell a house in the US? Get Connected To a GREAT Real Estate Agent Here:

My Gear I Use for YouTube:
www.amazon.com/shop/jason walter

Products I use and like: #ad

[irfaankalamadeen]

What people dont realise is that usually when mortgage rates start to decline after rate hikes that means the recession is here. Case in point in 2006 rates were 6.5%, 2007 to 2008 - 5%, 2009 - 2011 4%, 2012 - under 4%. Home prices declined for all these above period simultaneously with intetest rate declines.

[jayneweaver]

Fannie Mae or Freddie Mac financing requires the last 2 paystubs covering 30 days. Depending on the closing time, longer than 30 days, underwriting may require an additional paystub to close for W2 borrowers. One missed paycheck here is detrimental. No matter what anyone says this shook Silicon Valley to the core, I'm here, Silicon Valley Bank WAS one of the most prestigious, trusted banks. Ppl thinking "it can't happen here, we're SV" is out the window.

[c.p.haslop]

Home buyers of the world unite! Low ball all offers... 😉

[brianrybloom]

Thanks for your reports Jason. I enjoy seeing people’s comments too. Seems like there are lots of people like me who weren’t as informed in 2008 as we are today. Nice seeing the data displayed so well. Knowledge is power.

[reb]

Jason your video was indirectly optimistic for the housing market. I think with the fall of SVB it will be interesting how that events takes a hold on the Silicon Valley area along with Central California since that area seems to be all tied together. What blows my mind is the continued home building across California with there being very little qualified buyers left. I’m seeing home buyers cramming extended family and friends into these new homes to make the payment causing parking issues in brand new housing developments.

[muddysneakers]

Powell is NOT dropping interest rates. Does anyone here actually watch The FED minutes (ultra boring but I do)?

CPI data (its all fabricated data to help them justify their policies) and jobs report are telling them rates will go HIGHER FOR LONGER.

Don't expect a drop, but a stagnation of rates for most of 2023...hell, there is a lag effect of 6- 12 months for each increase and people haven't even felt current rates yet.

[TurboSol]

It seems counterintuitive that rates would drop but the reason is because the market is already pricing in future rate drops coming soon because they see recession/economic turmoil ahead.

[jmoneymillionaire]

Great to see stubborn sellers rent their properties instead of sell. This will keep pressure on rental market and ultimately backfire - just as so many new multi-family apartments are opening. This spells low rent - likely back to pre-pandemic levels.

[yevheniisoboliev]

Hi, may I get all the links from your video, especially to monitor daily mortgage rates as well as increasing or decreasing home prices with inventory?

[go]

People who sat patiently for lower prices and lower rates will be rewarded. Those who followed a lot of youtube real estate folks pumping FOMO will lose big.

[D-lovelyart]

What a hyper-reactionary market! Just don’t believe this interest rate reduction will last especially if consumer sentiment tanks in the coming weeks thanks to bank failures.

[diegonicolas]

Question for you: If someone has a low rate and does not want to move because of that, why should that affect home prices? If someone moves out (supply) is to buy another property elsewhere (demand). So at least at the aggregate, there is one hole being sold and one being purchased. Then, the net effect on home prices should be nil. Is this reasoning correct? Thanks Jason

[kalef]

Watch inventory pick up as rates drop but prices also drop 👏

[theforestisdark]

Those same sellers who have interest rates at 3% alos over paid by 100k so they didn't save anything, also builders are building apartments like crazy so it's gonna backfire on those home sellers in my CA market they're building a over supply of rental units.

[Classpower]

Great info! Love the content, but it would be really helpful if you can give more analysis in-between all this dense info. Thanks in advance.

[TrollislifeH]

You do realize people are rushing to buy bonds, that’s what driving the treasuries down. The sharp drop means the confidence in other assets is dropping fast, including real estate. Just because the rates are dropping, it’s still way too early to correlate this with a uptick in demand, I seriously doubt this will reignite any activity in the markets.

[DL-xi]

the cascade effect of the bank failures would not be good for the housing market

[Steverz]

Sunday Service with Jason Walter!😂Coffee cups up

[ejteran]

Great video! Can you provide us a link of the website you use that contain the graphs you show in your videos. Thanks in advance