Mortgage Interest Rates Heading Higher

Mortgage Rates and Bond Yields are Hitting The Highest Levels In Decades as The Fed still sees upside risks to inflation possibly leading to more rate hikes. At the same time, we are seeing a tight labor market along with strong economic growth. Will the FED continue to pause with interest rate hikes or continue to push rates higher? How will the fed's decision affect the housing market in 2023 and 2024?

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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty

#housingmarket #housing #interestrates

[AJourneyOfYourSoul]

I don’t know a single person who works a job that is basically prospecting for clients, not go broke eventually. They make a ton of money at times, but always end up losing their business.

But I know lots of career professionals, doctors, engineers, cpas etc….who just keep chugging on year after year.

I hope you are doing ok during this crash in transactions Jeb.

Hang in there buddy.

[BoyWar]

If they reduce the rates and people sell, others will buy. If they hold the rates higher till people lose their jobs, then reduce rates, homes can be affordable but not many buyers??

[GoArian]

End the Fed, the constitution never gave us a FED Bank... think about that... how many of these kinds of problems happened before the FED

[bigd]

Welp I’m canceling my new build contract. These rates are ridiculous. 6 figures income, no debt, 820 credit…the rates I was quoted are stupid

[logicalthinker]

Not Good for the Real Estate industry. The crash in transactions is definitely not good for realtors and mortgage lenders, they don't really care about house prices, but they do care about transactions because volume is key to earning commissions. As rates continue to stay higher for longer, more realtors will call it quits and more mortgage lenders will continue to lay off or shut down.

[theylive]

In my area in Orange County, prices dipped when rates hit 7%. But now, there’s several homes for sale this week with higher asking prices.

[eric]

I wouldn't touch buying a house today. Especially for investment income. Sold mine in 2021. Saw this coming miles away. Moved into treasuries and generating 5.5% without the headaches.

It's clear the Fed has to tighten, just like they said. Regardless of the squealers. They have to cool the economy which can only happen in two ways. Either unemployment has to go up which isn't likely with the boomer population significantly greater than the millennial population. Or the housing prices have to come down 35% over the next 7 years which is more likely with the boomer population expiring. Fed has to hold interests rates above 5% for the significant future (decade) for this to work out. They have to hope that unemployment doesn't surge, housing prices don't crash, or that the economy does not fall into depression over the next decade. That would be the ideal soft landing scenario.

[lukem]

Demand is way down. Debt is huge, bad decisions are being made, it will come on hard and fast.

[shouse]

Rates are going to 9%...yes 9 % for a mortgage. BUT BUY BUY BUY!!!...now for me, I buy buy buy treasuries...as far as housing, when homes dont transfer that there does a huge thing to inflation, see Jeb as houses transfer then people spend money on all things housing related and that causes demand which in turn causes higher inflation. New house means new furniture, new bigger TV's and so on...As I own a classic car I can tell you parts are getting cheaper, as far as a boat owner, boating accessories are getting cheaper...disposable money is drying up and now the first is luxury/pleasure items are starting to be discounted. Funny thing less than two years ago most said cash was trash..lol well no, cash held will buy more as deflation starts, housing will decrease, home prices will continue to drop. Builders can help pay down rates but to only an extent...at 9% real hard.

[watupclown]

The rate will keep going up until some thing brakes

[CaptainHookhatesBooks]

Congrats to those who bit the bullet and bought before 6-8%. Goodluck to those that are waiting for this "crash" that won't happen anything time soon.

[Coffeendonuts]

Rates took out their October 22 highs. This indicates rates are probably going significantly higher.

[gottiic]

Some sellers are asking for to much especially with as sold homes looking like shit asking 250k+ here in Illinois

[sb]

Why will new buyers keep increasing ? Old people won’t die anymore ?

[loopba]

Its called the great reset, creating the new modern slavery

[eatprayfrag]

HIGHER rates are GOOD for the economy. Change my mind.

[krassimirpetrov]

Hey they’re even higher today and going wayyy higher

[SmokingLizard]

The new age family household will include Gen-X, Millennial, Gen-Z, and Gen-B; in a 2 to 3 bedroom house with 6 cars.

[garrettjoseph]

My best guess is interest rates get closer to 10%

[Zahra-lcmj]

I think they will decrease it next year if holiday shopping and travel is low