Mortgage Demand Rises As Mortgage Rates Fall - Here's Why
Published: 2023-11-24
Status:
Available
|
Analyzed
Published: 2023-11-24
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
If the Federal Reserve cuts interest rates, it could increase demand and impact supply in the housing market, which currently has record low supply shortages.
"if you do start to see more interest rate Cuts again, I don't know if the feder Reserve Bank will do this or not, but if we do see more interest rate cuts, that could impact demand but also impact Supply and we are in a time where supply shortages in the housing market are at some of the all-time lows we have ever seen..."
Pending
Mortgage rates have fallen from approximately 8% to 7.5%. While this is a significant difference for the housing market, it's not a drastic drop like from 8% to 4%.
"so now what does this mean for the housing market well mortgage rates have fallen but they haven't fallen to anything significantly drastic there's a lot of news out there about the mortgage markets but mortgage rates fell from around 8% to around 75% which yes if you were in the housing market that's a big difference but it's not like the housing the mortgage Market has fallen from 8% to 4% % so understand that..."
Pending
If the Federal Reserve keeps interest rates high or raises them further, home prices may be pressured downwards. Conversely, if the Fed deviates from its stated plan, it could lead to higher home prices due to increased buyer activity.
"so if the FED sticks to their word then they're probably going to keep interest rates high and maybe raise them some more If the Fed doesn't stick to their word then that would push home prices even higher because then have more buyers hitting the market"
Pending
If the Fed maintains high interest rates or increases them, it could lead to a downward pressure on home prices. However, if the Fed deviates from its stated policy, it could result in higher home prices due to increased buyer demand.
"so if the FED sticks to their word then they're probably going to keep interest rates high and maybe raise them some more If the Fed doesn't stick to their word then that would push home prices even higher because then have more buyers hitting the market"
Pending
Higher mortgage rates decrease demand, leading to lower home prices. Conversely, lower mortgage rates increase demand, which in turn drives up home prices.
"higher mortgage rates lead to lower Demand lower mortgage rates lead to higher demand and higher demand leads to higher home prices lower demand would pull home prices lower"
Pending
Home prices tend to increase more rapidly than they decrease, as sellers are more inclined to raise prices than to lower them.
"home prices always move faster up than they do down because a home seller is much more likely to raise the price of their home than they are to cut the price of their home"
Pending
Mortgage rates have decreased from approximately 8% to 7.5%, representing a notable change in the housing market, though not a drastic fall to 4%.
"mortgage rates fell from around 8% to around 75% which yes if you were in the housing market that's a big difference but it's not like the housing the mortgage Market has fallen from 8% to 4% %"
Pending
There is speculation about the Federal Reserve cutting interest rates in the upcoming year, although the speaker believes this should not happen soon. The speaker suggests that political considerations, such as the election year, might influence the Fed's decision to make the economy appear favorable.
"there's a lot of talks about the Federal Reserve Bank cutting interest rates next year I'm not saying that the Federal Reserve Bank should cut interest rates next year in fact if you want my opinion I don't think the Federal Reserve Bank should be cutting interest rates anytime soon but what I think the Federal Reserve Bank should do isn't always what the Federal Reserve Bank will do because well 2024 is also an election year and they want to make sure the economy looks good for the election year and all that other stuff"
Pending
If the Federal Reserve adheres to its stated policy, interest rates will likely remain high or increase further. If the Fed deviates from this commitment, it could stimulate the housing market by increasing buyer activity and consequently pushing home prices higher.
"if the FED sticks to their word then they're probably going to keep interest rates high and maybe raise them some more If the Fed doesn't stick to their word then that would push home prices even higher because then have more buyers hitting the market"
Pending
Following a cooler-than-expected inflation report, treasury yields have declined. This decrease in yields has provided room for retail interest rates, including mortgage rates, to fall, leading to a gradual downward trend in mortgage rates over the past month, independent of Federal Reserve actions.
"well now because of the last inflation report which came in colder than expected you saw treasury yields fall and because treasury yields have fallen that allowed retail rates for interest rates mortgage rates and all that other stuff had some breathing room to fall as well that's why over the last month we have been seeing mortgage rates slowly fall downwards even though the Federal Reserve Bank didn't cut rates but because treasury yields were falling"
Pending