Mortgage Rates and Housing Market | Biggest Rate hike in 28 Years to HALT the Housing Bubble

Please watch: “The Truth About Interest Rates & The Massive Impact They’re Having on Real Estate”

Hey folks stanford here with your mortgage minute where we discuss everything real estate especially when it comes to the financing options so today the only word out there is the fed so why are we considering or why we even care about the fed well did you see the stock market lately have you seen mortgage rates have you seen gas prices have you seen all kinds of

Stuff just keep going up and up and up well the federal reserve has two mandates one mandate is full employment the next mandate is price stability or aka inflation so what they’re trying to do right now is really put a squash on inflation so how they gonna do that well let’s get over to the news and figure this out so what the fed’s planning on doing is they’re

Gonna do something that they haven’t done in over 28 years so let’s see look at this here’s everything the fed is expected to announce including the biggest rate hike in over 28 years well going in let’s let’s go over what that is they’re expected to raise the federal funds rate by three quarters of a percent we call that 75 basis points but the odd thing here is

Ever since the last fed meeting all they’ve been telling us is they’re going to increase rates by 50 basis points all the way up even to last week but then all of a sudden on friday the markets got went into complete chaos stock market plummeted mortgage rates spiked that continued on to monday mortgage rates spiked again pushing up rates probably almost across

The board at least between a half a percent and one full percent in two business days so did somebody know something that we all didn’t know because what happened at that point is the markets all re repriced themselves based on the new projection of what the federal reserve is going to do so we’re going to have a special report coming out today at one i’ll be

Live to answer any on all questions that you have but we’re also going to have a special event at three o’clock central standard time with realtors all over the country to give their input on what is this going to do to housing and these are not only realtors but they’re also youtube influencers so let’s get over to the news and some data that i think would be

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You’ll find relative well some good news that we just had announced just coming off hot off the presses is ut us retail sales fell 0.3 percent in may you might not think that’s a big do to do but let’s go down through here excluding gas station sales retail spending fell 0.7 percent that is one big move is the economy starting to finally cool off because people

Have to allocate monies now to fuel that they would allocate in other areas the only economic news we have today and i say only because it’s a laundry list but not really there’s three main components to this we have retail sales that came out we have oil inventory and then we got the fed so here’s the here’s the uh retail sales numbers the core retail sales it

Shows that last reading was 0.4 the expectations were to be at 0.8 and it came in at 0.5 so lower than expected look at this number down here the retail sales in general they were expected to be well last month’s was up 0.7 they were expected to come in at 0.2 so a decrease starting to come back down would they come in it they were actually negative negative 0.3

So that’s another piece of the puzzle that’s saying hmm is the economy cooling we’ll know more today from the fed on what they plan on doing so why did you come here well mortgage rates so here’s where rates ended yesterday they haven’t priced in yet today but i got some good news for you in the mbs market so let’s go over to the mbs market what’s going on right

Now we usually uh like i always say the markets overreact so now they’re starting to come back saying okay everything’s been priced in and maybe we overdid it a little bit so what this number is right here is what’s the mortgage-backed security the bond that trades on wall street what it’s doing right now let’s refresh it and see if there’s any movement within the

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Last couple minutes since we’ve been doing this up it’s starting to retract a little bit i wouldn’t be surprised if this came all the way back to almost zero uh by about 1 30 quarter to two why at two o’clock the federal reserve will be announcing what they did so we usually have a rally in the morning and then right before the fed announces what they’re going

To do things kind of taper off and stagnate until they actually announce their news so we follow this because this is a bond that trades on wall street that yield is the biggest component of your mortgage rate so as this number goes up mortgage rates are coming down if you want to find out more about how that works check out yesterday’s video in the morning the

Mortgage minute uh on june 14th and i explain that to you how that works so we love when this number is positive why because that means mortgage rates are going lower there’s an inverse relationship so let’s go over to more mortgage rates ended yesterday and none of this news or none of these figures have been added into this figure yet because why this is a survey

That mortgage news daily does from lenders all over the country they haven’t had time yet today to get all those surveys in so they usually post around noon on where rates are so this is basically where we closed yesterday and you can see right through here basically a consensus was they were up so what i like to use this for again a lot of people ask me these

Questions dan that rate you know is that rate too high or that’s not my rate or whatever let’s let’s extract this number out right now okay i’d like you to see this because if you look at like the 52 week high and low look at here’s the low 278 and the high 6.28 a little bit of an increase when you say so what i’d like you to do is monitor these these adjustments

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Over here okay so let’s say for example if you got a quote and your quote was for six percent and you didn’t lock in but now you see this is saying well mortgage rates on the 30-year fixer up probably 0.1 percent so if you get a new quote from your lender you’re don’t don’t be surprised if your rate doesn’t go up by 0.1 so we have the 30-year fixed here 15-year

30-year jumbo up 20 basis points the 5-1 arms continuing to tick up at 20 base points and the government the fha and va loans are flat right here you can see the their trend for today is extremely positive did somebody leak some more data we don’t know and we’ll find that out about 2 o’clock trend for the or the 10-year trend right here chart we’re in an uncharted

Territories there and like i said the mbs market let’s check it one more time before we go it’s up 48 was up 55 we’re up 44 so it’s starting to retract just like i said so guys this is your mortgage minute with dan frio i hope you join us at one o’clock so i can answer any questions that you have it’s one o’clock central standard time live and then we’ll be back at

Three o’clock central standard time with realtors from all over the country to answer any questions that you guys have and figure out what their thoughts are now that the federal reserve came out what do they think the housing market’s going to react so find out all that and more later this afternoon but thank you so much for joining me god bless have a great day i’ll see you later bye

Transcribed from video
Mortgage Rates and Housing Market | Biggest Rate hike in 28 Years to HALT the Housing Bubble By The Rate Update with Dan Frio