ilmscore | It's Official: Mortgage Rates Have Hit 8%

It's Official: Mortgage Rates Have Hit 8%

Published: 2023-10-03
Status: Available | Analyzed

Predictions from this Video

Total: 8
Correct: 0
Incorrect: 0
Pending: 8
Unrated: 0
Prediction
Topic
Status
Home sales fell by over 15% year-over-year from August 2022 to August 2023.
"in August home sales fell again and month over month between August 2022 and August 2023 home sales have fallen by over 15%"
Housing Market
Pending
10-year and 2-year treasury yields have reached their highest levels since before the 2008 financial crisis.
"we have seen the 10-year treasury yield and the 2-year treasury yield break record highs I mean the highest levels we have seen since before the 2008 crash"
Treasury Yields
Pending
High inflation will put continued pressure on the Federal Reserve to raise interest rates, which will in turn keep mortgage rates elevated.
"we're seeing two things happen inflation is still high and if inflation is still high that puts more pressure on the Federal Reserve Bank to keep raising interest rates that's higher pressure on mortgage rates"
Mortgage Rates
Pending
Both Federal Reserve interest rate hikes and rising treasury yields are driving mortgage rates higher.
"Federal Reserve Bank interest rates Federal Reserve funds rates higher treasury yields higher both of these things are pushing mortgage rates higher"
Mortgage Rates
Pending
Rising mortgage rates, driven by Federal Reserve actions and treasury yields, are making home affordability worse, even if home prices remain stagnant.
"both of these things make home affordability less affordable lower home affordability that means now it is more expensive for you to buy a home even if home prices don't rise"
Housing Affordability
Pending
If the current trend of slowing home sales continues, sellers may eventually be forced to cut prices, leading to a potential decline in home prices.
"if it continues like this you'd have to imagine that eventually sellers are going to say all right we need to sell our home we're willing to cut the price and if that happens if home prices Begin to Fall"
Home Prices
Pending
Mortgage rates will not fall unless inflation significantly decreases and remains low, which is not currently happening as inflation remains high and above the Fed's 2% target.
"for mortgage rates to fall according to the information that we're told by the Federal Reserve Bank we would need inflation to fall significantly and for it to stay lower but we're not seeing that happen in fact we've been seeing inflation stay high inflation hasn't reached the Federal Reserve bank's Target rate of 2% let alone stay low"
Inflation
Pending
Because inflation is not moving towards the Federal Reserve's target, the Fed is likely to maintain high interest rates or even increase them further.
"inflation isn't where the Federal Reserve Bank wants it to be and it's still not going steadily down that's more pressure for the FED to at least keep interest rates High maybe even raise them higher"
Federal Reserve Policy
Pending