Interest Rates are surging across the US Bond Market, largely driven by Hawkish Fed Policy from Jerome Powell. Quantitative Easing / Money Printing is ending, and interest rates are expected to go up. This has the Mortgage Market going crazy in early 2022, with dramatic increases in Mortgage Rates to start the year.
Redfin Payment Tool: https://www.redfin.com/news/higher-mortgage-rates-spur-homebuyer-urgency/
CNBC Article: https://www.cnbc.com/2022/01/18/mortgage-rates-jump-again-causing-headaches-for-homebuyers.html
The 30-Year Fixed Mortgage Rate has surged to 3.7%, which is starting to create big problems in the 2022 US Housing Market. Homebuyers, who were already struggling with affordability, and are now struggling even more. Meanwhile, real estate investors are beginning to consider buying bonds instead of homes.
These higher mortgage rates are creating especially big issues for buyers and investors in California, Utah, Colorado, and Washington. Housing Markets in cities like Seattle, San Francisco, and Salt Lake City are already very expensive compared to local wages. Higher Mortgage Rates means that home prices in these markets will need to go down for local demand to stay strong.
At the other end of the spectrum are cities like St. Louis, Detroit, and Mobile. These Housing Markets are more insulated from the negative impact of higher rates and inflation because locals are paying a relatively small share of their wages toward mortgage payments.
If you’re a home buyer or real estate investors in early 2022, makes sure pay attention to prevailing interest and mortgage rates. They could have a big impact of the 2022 Housing Market Forecast, as well as causing price declines in certain cities.
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0:00 Emergency Broadcast: Mortgage Rate Crash?
1:12 Fed Policy Turns Hawkish: Mortgage Rates to 3.7%
2:24 Mortgage Rates Spiking FAST
3:48 Home Prices Need to Go Down (Redfin Interactive Tool)
5:22 Simple Math of the 2022 US Housing Market
5:58 Highest Housing Crash Risk: Red v. Blue Cities
7:43 People in Real Estate are Freaking Out
8:42 Economic Collapse Coming? Especially in Tech
9:34 Smash the Like Button! And Comment Below!
#MortgageRates #HousingBubble #HousingCrash