Housing Affordability Just Got Smashed To a 40 Year Low

and nine percent mortgage rates guys everybody was shocked just a few weeks ago when mortgage rates hit seven percent but now a lot of the housing experts are already coming out just a few weeks later and saying that don't be surprised if we hit nine percent mortgage rates within the next 12 months That's the prediction right now, 9%.

And you know, you have the big firms like Zillow and Redfin and places like that claiming that we're only going to be at six and a half or 7% by the end of the year.

Well, we've already blown past 7%.

We're already in the mid sevens right now for the average 30 year fixed.

And with how fast it's rising, I wouldn't be surprised if we get to those 9% mortgage rates before the next 12 months are up.

That's where it looks like things are going right now.

And they make several different points of why they think this might happen.

And I want to go over these with you because they're actually some very good points.

The first thing is oil prices.

They say that if the war with Iran continues and if oil continues to trade around $100 a barrel like it is right now, then it is very easy to see a future where we hit these 9% mortgage rates sooner than later.

The second point is that the economy would have to keep growing quickly without much weakness in spending or jobs.

I'm not so sure about that one.

That's what they think would need to happen to see 9% mortgage rates.

Personally, I think we might be able to get there without that happening because their train of thought here is, well, If the economy remains hot and the job market remains strong and spending remains strong, then the Fed will be more likely to continue to increase their interest rates.

However, for anybody who's been paying attention, the recent rate hikes for mortgages and lending in general are not connected to the Fed rate hikes.

It is connected to the surging treasury yields, which we'll talk more about later in this video, guys.

But they are absolutely exploding over these past few weeks and seemingly going nowhere but up.

And it has nothing to do with the Fed.

The third thing they say that would need to happen to see 9% mortgage rates is that the Fed would have to remain aggressive.

I don't know what they're talking about because they haven't been aggressive at all, if you ask me.

But we would need to see more rate hikes than expected if we are to see 9% mortgage rates.

But again, the mortgage rates are not connected to what the Fed is doing, at least not anymore.

Maybe in history, in the past it used to be, but the way the economy is set up and running right now, it's completely disconnected, guys.

and nine percent mortgage rates guys everybody was shocked just a few weeks ago when mortgage rates hit seven percent but now a lot of the housing experts are already coming out just a few weeks later and saying that don't be surprised if we hit nine percent mortgage rates within the next 12 months That's the prediction right now, 9%.

And you know, you have the big firms like Zillow and Redfin and places like that claiming that we're only going to be at six and a half or 7% by the end of the year.

Well, we've already blown past 7%.

We're already in the mid sevens right now for the average 30 year fixed.

And with how fast it's rising, I wouldn't be surprised if we get to those 9% mortgage rates before the next 12 months are up.

That's where it looks like things are going right now.

And they make several different points of why they think this might happen.

And I want to go over these with you because they're actually some very good points.

The first thing is oil prices.

They say that if the war with Iran continues and if oil continues to trade around $100 a barrel like it is right now, then it is very easy to see a future where we hit these 9% mortgage rates sooner than later.

The second point is that the economy would have to keep growing quickly without much weakness in spending or jobs.

I'm not so sure about that one.

That's what they think would need to happen to see 9% mortgage rates.

Personally, I think we might be able to get there without that happening because their train of thought here is, well, If the economy remains hot and the job market remains strong and spending remains strong, then the Fed will be more likely to continue to increase their interest rates.

However, for anybody who's been paying attention, the recent rate hikes for mortgages and lending in general are not connected to the Fed rate hikes.

It is connected to the surging treasury yields, which we'll talk more about later in this video, guys.

But they are absolutely exploding over these past few weeks and seemingly going nowhere but up.

And it has nothing to do with the Fed.

The third thing they say that would need to happen to see 9% mortgage rates is that the Fed would have to remain aggressive.

I don't know what they're talking about because they haven't been aggressive at all, if you ask me.

But we would need to see more rate hikes than expected if we are to see 9% mortgage rates.

But again, the mortgage rates are not connected to what the Fed is doing, at least not anymore.

Maybe in history, in the past it used to be, but the way the economy is set up and running right now, it's completely disconnected, guys.