#Mortgage #Rates #Fed
Yahoo Finance Live’s Emily McCormick breaks down the stat of the day.
Don’t Miss: Valley of Hype: The Culture That Built Elizabeth Holmes
WATCH HERE:
Watch the 2021 Berkshire Hathaway Annual Shareholders Meeting on YouTube:
Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb
About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.
Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit: https://yhoo.it/33jXYBp
Connect with Yahoo Finance:
Get the latest news: https://yhoo.it/2fGu5Bb
Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq
Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP
Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz
Follow Cashay.com
Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV
Why buy BTC or ETH and only make a 2X? When I can buy DPAD Finance and get 100x returns? Low market Cap @300k MC, when listed on CEX easy 100M Mcap, that 50-100X. Do the maths and do your own check
Yahoo News, please report on the amount of institutional shorting of the TLT which is causing the US10 Yield to rise abnormally.
EZ, Fed just call on the good pal BlackRock to buy bonds and then 1 year later buy it at premium and skyrocket balance sheet back to where started. Fed promised trim sheet, but not for how long
“Creep”??
A house that has gone up 📈30% from 500k to 650k has to just drop by 📉25% to be under water at 487k ☹️
It overshot on the way up… It will overshoot on the way down…FOMO works on down side as well….. It always does.
Only those who had cash got to buy properties 40-50% down after 2008.
Yep. I think the housing market will slowly come back down or it will crash down the road. Residential real estate is already unaffordable for most Americans and rising interest rates means that even a bigger portion of Americans won’t be able to afford a home.
You sure about that? I’m not a guru but I bout in June 2009 using my VA Loan. All I came to the table with were closing costs.
This ain’t no creep lol this is robbery in broad daylight no fk’s given
I hope that residential real estate pricing comes back down to earth with interest rates going up.
@Jack Tran How so?
@trainsandlocomotives You buy when you feel like there’s a bottom. For houses you buy when you need to buy, for investors they will wait for a bottom.
@Jack Tran oh yup that’s right bro. You hear about the 40 year mortgage?
@trainsandlocomotives yes I have
@Jack Tran That’s why I feel like the drop won’t be as bad. Banks are working with homeowners. “If you can’t pay, here’s 40 years”. Interest is going to suck though
Arm loans are hurting right now
Prices go up and down all the time. Biden says its temporary and to blame Putin.
Which is good for buyers. Prices gonna fall eventually
As soon as prices drop, people on the sidelines waiting are going jack it up again. It’s everyone for themselves and people aren’t going to care enough to let it drop. Many people waited in 2020 thinking foreclosures were going to happen and they were going to take someone’s home for cheap. Serves them right. I think the drop(if there is a drop) will be short lived and the window to take advantage will be short.
they gave out 5.7 trillion, inflation is not going away anytime soon.
This is NOT good news and this video needs to be removed to make Brandon look good in this FAKE economy.
I like interest rates will go up 16% like JK
Who bought a home at the peak? 😳
I think the Fed should begin rapid balance sheet reduction first, before raising any Fed interest rates.
The current inflation is mainly due to the Ukraine war, Covid-19 disruption, deglobalization, and QE, which cannot be solved via interest rates.
Raising the interest rates will only let ordinary people suffer more, especially with the increase in the mortgage/rent payment.
For ordinary people, the effect of double the mortgage/rent payment is much higher than double the energy & food bill. People can go through the unavoidable increase in their energy & food bills, but why should the Fed add a much heavier layer of higher mortgage/rent to them quickly before they can go through the higher bills first?
The rapid expansion Fed balance sheet via the QE program is unhealthy, and it mainly creates inflation and helps the people in the financial world, while the interest rate affects the living cost of every ordinary people.
I think the Fed should start the rapid balance sheet reduction first, while raising the interest rates only after the reduction is finished, and give some time to the ordinary people to let them have enough income to pay for their monthly bills.
Recently, lots of investment banks and financial institutions urge a quicker increase of the Fed rates, which will only benefit themselves but not the general public, as the investment banks have already purchased lots of derivatives against the well-informed rates rise. The quicker raising rates make the financial cost and holding time value premium of the hedging derivatives lower, and the higher rates let the banks earn much higher interest payments after these hedgings. While ordinary people have not done any hedging.
Originally, the bankers should not earn so much profit from these hedgings. But if the rates are raised much higher and quicker, the bankers can get big profits from the lower cost derivatives, and also enjoy higher interest payments from their fixed-income securities holdings after this profit, while they also earn the money from the loss which Fed made during the selling of their holdings with a lower price after its rates rise.
Rates up first -> bonds price down -> later Fed reduce balance sheet with a lower price -> public Fed lost money to private bankers -> BAD.
Reduce balance sheet first with a normal price before rates up -> public Fed does not lose -> raise the rates after balance sheet reduction -> GOOD.
After transferring so much wealth from the public into the private bankers via a quick hudge rates rise, If the balance sheet is still not reduced, a recession will come as every ordinary people are suffering from the rapid huge rates disruption without hedging, and Fed will just see the increase and later reduce the rates, as well as, create an even bigger unhealthy balance sheet!
What is more, in order to maintain the US dollar hegemony, both reducing the Fed balance sheet and keeping the Fed rates stable are very important, as no one wants to hold a volatile and massive expansion thing.
In history, the last several rate hike cycles have never brought the US equity market down. Please compare the full chart of SP500 and federal funds rate! How could the raising rates reduce the price of assets?
If the fed reduce the balance sheet without raising rates, the house price will go down, and the monthly mortgage payment will be steady. People will find an easier life.
If the fed raise the rates without reducing its balance sheet, the house price will still be super high, and the people have to pay much higher mortgage. People are suffering!
Interest rates may rise, but that doesn’t mean home prices will drop. Price is baked in. We still have very low inventory & sellers are sitting on a ton of equity.
Yup definitely agree. The rental experience is horrible for renters and some are trying to escape that. The drop will be short lived if there is even a noticeable drop.
It’s going to be wild all the people who are millionaires today will be bankrupt ones the market crashes
Your videos are very useful and provide lots of information. I have received lots of help from your posts, please continue to share this kind of information. Thank you.
Maybe folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Seriously, you have the Colorado River a mere walking distance away, with nine gambling casinos on the river bank across the river in Laughlin, Nevada, you have four-wheeling in the Black mts. (where gold mines are STILL being mined to this day). Fireworks over the river on the 4th of July is a sight to see. And we’re only 90 miles south of Vegas. Water taxi’s move people from one casino to the other, for those who don’t drive. There’s plenty of water sports (fishing, jet skies, etc.) and the best Springtime in the nation. But most important, PRICES ARE STILL REASONABLE.