The FED Just PAUSED Mortgage Interest Rates

The Federal Reserve approved its 10th interest rate increase in just a little over a year by hiking interest rates a quarter point BUT signaling a potential end to interest rate hikes. The Fed left the door open for this to be the last hike, by dropping verbiage about policy being "sufficiently restrictive" and more importantly by dropping the phrase "in determining the extent of future increases."
Should you buy now or wait for a housing crash? In this video, we discuss what the FED is saying about the potential recession along with their new plan going forward into 2023.

🎙- The Educated Home Buyer Podcast -

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

#housingmarket #housing #interestrates

[richardhuey]

I really don't believe we are going to have a soft landing. While residential real estate is holding pricing and still has demand, commercial real estate is teetering on collapse. Many commercial loans are about to renew at 2x interest rates and much higher vacancies. Should we see a large number of commercial loans go in default, we will see more mid-level banks collapse.

Also, consumers are in a very different financial situation than two years ago. We are seeing depleting savings and rapidly increasing revolving credit balances. Inflation has severely depleted disposable income, and consumers are now focused on buying necessities. Now throw in an increase in unemployment, and defaults will increase. When this occurs, it will compound and push us into a harder recession.

[TheItachai]

I’m going to be honest as a buyer it is rough out here going 10k over and still losing this battle. I hate this so much I pray we as a nation get better.

[illistwow]

Even with 20% down, a California home in a typical area would cost over 4000 a month. Any sort of income loss would lead to a pretty stressful situation…

[amprg]

It's really sad to see how people are struggling. But its tough for everyone. My friend tried to increase his rental 10%. The tenant said he cant afford it and will move out. Now, the tenant can't find anywhere cheaper. Everything is getting more expensive; property tax, insurances, costs of repair, ...
In reality, my friend won't make more money. He's just facilitating transactions between the tenant and government.

[matmerz]

There’s no way this was the end of rate hikes. Inflation is completely out of control still. Housing is still out of control also purely because people won’t sell. They are sitting on low loan amounts on homes that are priced WAYY to high. Only way to correct this market is through massive layoffs.

[patmagic]

This is exactly the problem. People, the media, agents are all reading into Powell’s words as if they’re iron clad indicators of a pause or a pivot when they aren’t and haven’t been. So many believe that 3% mortgages are normal when that was the abnormality that created the mess. I hope rates go to 7% and stay there until inventory stabilizes.

[p.tfreefree]

I’m in Miami and crack houses are going for no less then 350k, it’s sad

[ryans]

Cost of living is still up 90% compared to 2018, and housing is the biggest reason. Apartments are not affordable and you almost need a loan to live in one.

Fed better not back off until things burst and go back to normal

[rushmoresociety]

That Thumbnail Face followed by "the Fed paused rates, " lol 😂 is CLASSIC YouTube hilarity. Oh man, I hate the game 😅😅

[BY-rlsk]

I am still waiting to get an offer for the price I want for the property I am selling in FL

[CaracappaMarco]

This is what we are seeing in NJ. Towns with great school systems are going to best and final offer bidding wars within days of listing if the home is priced well. Even garbage homes are getting scooped up quickly. In towns where school systems are not great, the houses are sitting for a long time. I believe once the buying rush to get into the school systems runs out we will see demand drop pretty significantly and prices come down. (regardless of what happens with % and market outlook)

[Datacorrupter]

there not saying that it would be the ceiling but only a pause. they have made a point they want interest rates elevated for an extended period of time and likely much higher from here at some point

[jamespruitt]

You are leaving out about our currency being dumped in other markets and moving away from the USD

[Jack-Surreal_Panes]

Don't see a new home slowdown. Not only has pace doubles, we cannot build fast enough because buyers are coming out of the woodwork. We went building and selling this fast when rates were 2, 3, 4.

[cb]

Why did you add mortgage into the title knowing good and well that they don’t fully control mortgage rates. Many factors outside of the fed funds rate effect mortgage rates.

[orvillebryan]

Don’t fooled he is coward a because this system must be reset and he is playing politics because at the end day will crash hard, it tuff for real estate guys not making money but get use and get creative because no amount of videos can help this Country its over

[Thomz]

Good amount of cali people that moved to texas over bought not taking into account the property tax. Most of them if their renters leave they'll lose their property.

[theylive]

Hey Jeb new subscriber! I think a lot of your commenters haven’t actually bought/sold anything recently. I bought a condo in OC in 2021. Won a bidding war with seven offers and paid 15% over asking and had a 3% loan. Competition / 1031s was so insane it was all we could get. This year we sold the condo for 15.1% over the purchase price and sold in 5 days. We bought a home in OC this year and had no competition AND bought below asking. Yes, we have a 6% rate now, but our lender is giving us a free Refi. Also, we got a home we NEVER could have access to in 2021. There’s a WAVE of people waiting to jump back in. Not getting easier by waiting.

[dchex]

Two more .25 points coming up. Guaranteed.

[backrack]

Not sure why people think home price correction is suppose to happen over night. History tells us it never has and is usually the last market to get corrected. Think years..not months.