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[upbeat music] Just looking at that 30-year mortgage sitting there at 7.4%, um, I think there's definitely a chance that we go up over seven and a half, and then, the- then the question becomes, again, going back to these rates here, you know, I, like, I've- I've said literally a million times, the 10-year Treasury runs your life.

That's the one rate that you have to pay attention to, because everything is basically built off of that.

Your 30-year fixed rate mortgages, uh, consumer loans, um, credit card debt, uh, student loans, auto loans, all the everything, just runs off the 10-year note for the most part.

And, you know, seeing that go up to 5.2%, I mean, if this goes up to five and a half, you're now at...

You're gonna be at seven and, seven and a half percent 30-year fixed mortgages, if not a little higher.

If not, if not up to, you know, maybe 6.7 or, you know, 7.65, something in that neighborhood.

I mean, so again, just absolutely, uh, crazy where these yields are going right now at the moment.

It's just wild.

Again, to see that 30-year fixed rate up to 7.40% is just unbelievable.

So couple of other, uh, residential mortgage-related articles here real quick before we get into some of the other news of the day.

So how 7% mortgages are wrecking the home buyer playbook.

So with prices at record highs and inventory locked up, house hunters face dwindling financing options.

So with mortgage rates breaking through 7%, some home buyers are considering the familiar strategies for lowering their monthly payments, putting down more money, using adjustable rate mortgages, and even buying in cash.

House, house hunters still face a financial double whammy rarely seen.

Rapidly rising mortgage rates and home prices that, while growing more slowly, keep hitting record highs.

Uh, that has made the post-pandemic housing market one of the most challenging in recent memory and limits the amount of financial maneuvering available to would-be buyers.

Uh, increasing the size of the down payment would help offset the monthly bill that comes with a higher mortgage payment, but home prices are up more than 50% since 2019, and many home buyers are struggling to find the cash to boost their deposits above the typical 10 to 15% down payment.

Uh, that has scrambled the usual buyer playbook for adjusting to higher borrowing costs.

Typically, when mortgage rates rise, sellers have to cut prices to keep buyers in the market.

But for years, supply has lagged behind as many homeowners have opted to stay put to preserve the 3% to 4% mortgage rates that they secured in the wake of the pandemic.

This lock-in effect, uh, homeowners refusing to sell and give up a low mortgage rate they locked in years ago, has allowed prices to continue rising even as demand has sagged.

Uh, the national median existing home price in August rose from 1.6% from a year earlier to $429,100, an August record.

Uh, that is despite sales falling to their lowest level and interest rates pushing to their highest point in more than a year.

So, so yeah, this is really, uh, putting a crimp and is gonna continue to put a crimp on there.