Strap in, this is a long one!
Last week the CPI came out not as expected. The percentage doesn't matter as much as the DIRECTION... it went up! This threw the market for a loop. Interest rates did increase and now the headlines are making you believe we are going into depression.
WE ARE STILL IN A STRONG HOUSING MARKET.
The likelihood of massive job loss and massive loss in the stock market is not likely... granted it may feel like it today.
Interest rates increased from 5.5% last Thursday to 6.18% yesterday. As we go into FED week, the market was expecting a 50bp increase. However, with the increase in CPI, the FED may be forced to increase that rate even more. That possibility of change is what makes the market react. The market likes knowing what is going to happen. So when the possibility of change looms, it begins to move.
Bottom line is that rates went up for several reasons, but we remain part of an incredibly strong real estate market.
I want to talk about the interest rates first because they went from 5.5 on Thursday to 6.18% on Monday 5.5% . That is a massive jump. Especially if you are watching my live session. I said, hurry up and get under contract, take advantage of the interest rates that we have today because next week we're going into the fed.
Now, even when interest rates started to go up, a lot of people are asking me how high do you think, they could go? And I was like six and a quarter, right? So we're here. We're at 6.25%. We made it, do we go much higher? I don't know. I don't know because the fed where we're at right now is a little bit unchartered. We've got this quantitative tightening that's happening and how aggressive the fed, uh, goes, is going to push interest rates. But what interest rates are doing right now is squelching demand. It's authentic demand reduction.
Listen to this episode as I also cover the continuing reasons the housing market is so strong. GET IN NOW!
Why You Should Buy a House in Today’s Denver Market
Look at the 30-year mortgage rate history; today is the best day to buy.
IsThere a Housing Bubble and Will We See a Recession?
DMAR April 2022 - We need a recession.
Is there a housing bubble?
Why is Debt to Income Ratio Important When Buying a Home?
Rising Home Prices and Increased Interest Rates - Get in it now.
Gaining the Upper Hand to Be the Winning Offer
Interest Rates and Inflation Explained
What are mortgage points?
Ways first time home buyers can take advantage of small opportunities
Four home loan programs to consider - VA, FHA, Jumbo and Jumbo LLC
Is It Worth To Bid Over The Asking Price?
DMAR March 2022 - Real Estate is Globally Affected
Will Russia Affect Interest Rates?
5 Mistakes to Avoid Before Closing on Your Home
Real Estate Appraisal Hacks to Get Under Contract
Why Are Interest Rates Rising and Affecting Affordability?
When Does It Make Sense to Buy Down The Interest Rate?
With a HECM You Won’t Ever Make a Mortgage Payment Again
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast