Fannie & Freddie Just Dropped a MASSIVE Housing Prediction

Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but l'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling

I hope you got paid to wear that hat.

Maybe it's an honest mistake, but the Fed always buys treasuries, and always has. The new York Fed has a trading desk, them buying and selling bonds is how they set rates...

If sixty percent of the people, no longer have a job, how will they pay to rent your apartment

Some Big builders are offering 30 years @ 5%. Also, some large builders are reducing prices in some states.

If the lock-in effect diminishes with lower interest rates, inventory may rise and prices may fall.

🤣🤣🤣

I don't think Daniel likes Trump. 🤔

The only way for the 10yr to fall right now in the wake of excessive debt is for the US to have a massive recession. The FED does not control the mortgage rate. I’ll predict without a massive recession the rates will slowly rise to 8%. Prices will fall, rents will fall, unemployment, and it will be long and protracted due to the FHA pipeline that will start going to foreclosure end of this year.
Trapped equity is diminishing now and will continue to disappear. Anyone who buys now at anything less than 20% current values is foolish. Just hold and wait it’s way cheaper to rent. Investors buying now wont be able to cash flow.

Rates at their lows were at 2.75% . X2 is 5.5%. So we are celebrating that rates might go back down to only double what they were in 2021 while prices have gone up from 60-100% over the same period. Rates are not the problem, prices are.

You win or lose on the buy.

Over pay …suffer the consequences.

The bond market is where mortgage rates go these people I wonder. If the government can’t sell its debt rates will go up.

I just can’t take her seriously with the hat.

Meh

Damn! 9 commercial deals where the LENDER has the keys? I’m wondering about all those guys syndicating these huge 3-400 unit apartment complex’s with super tight margins based on low rates, tenant improvements, etc. back in 2021-23 ish. Are all those syndicators heading towards calamity with rates doubling these last couple years?

They wont be able to refi because the value of the homes have dropped and the banks wont loan on more than the home is valued at.

You two can talk about rates all day long, but buyers are not going to pay the current prices.

These guys are a bit delusional

T.T. is trying to get business revenue taxes down to zero and if he was to do that, while doing it for the common man, it would all be for not, as somebody gotta pay for the Sh&t that has to be paid for (Police, Fire, roads, large necessary unprofitable projects).

Who is the people without representation and power...sadly if looks like the common man. T.T. already gave corporate america a 14% tax break in 1st term. My fault let me say it correctly...Tratior Trump gave a PERMANANT TAX BREAK to corporations in 2016.

Keep those tax breaks and give me better government.

President Donald Trump did not pass a tax bill in 2016. His first major tax legislation, the Tax Cuts and Jobs Act (TCJA), was signed into law in December 2017.
However, details about a proposed Trump tax plan from 2016 indicated some potential impacts on different income groups:
The poorest 20 percent of Americans: May have initially seen an average tax cut of $250.
Middle-income families: Might have initially seen an average tax cut of $2,571.
The best off 1 percent of Americans: Could have initially seen a tax cut averaging $227,225.

The government has been saying the rates will go down for the last three years. Why can't everyone just accept they don't have a working crystal ball. It sounds like more MAGA Trump tweets to make everyone complacent over the privatization and subsequent milking of Fannie and Freddie by the corporations.

Nobody "wants" to lose a 3% loan, but if you are in debt and lose your job you have no choice.

It is not a great time to buy no matter how you slice it😂

Guys, I understand why interest rate announcement is good for SF, but not higher unemployment. If people are nervous about their job security, they won’t buy houses even if interest is 0%. Am I wrong?

Even if rates go to 4% tomorrow, the average American household CANNOT afford these mortgage payments

"Most middle class don't pay alot of tax"😮 ... is she serious?

There is absolutely nothing shocking about this

“Not sure that no taxes on people making under 200k would them help much?” - “because they get taxes back every year” - yikes.

They pay 25+% of their income to taxes all year long.

that incredible .05% drop is really going to stimulate massive purchases in this massively overvalued market!

What about all the job losses? And rise in property taxes and insurance! Among other things.
Very few people who haven’t bought a house yet can afford one now and most that have are struggling to hold on to them!
Investors or different from the average person with a 9-5

Summary: Make sure to rush out and buy a house while its the most overvalued liability of all time right now because you can just refinance in a year or two after its lowered. Keep in mind though you'll also be out of a job in a few years so make sure you have prepared for that

When do I get my stock control back from the government in Fannie and Freddie? What a theft.

People won't be able to refinance when the house isn't worth what they owe.

Would love to see the negotiations happen to put the places at true value. But people aren’t going to lower prices 40,50,60% in some cases.

nobody is flooding anything.

Please stop contradicting everything Ken says, it would be more enjoyable to listen.

Very helpful Thank you for sharing this

UBI will be the trigger that makes USA a socialist country. NOT GOOD.

My wife and I still will not beable to buy a house. This doesn't help. Its still to expensive.

Buyers who bought at 2–3% rates stretched their budgets to the edge just to afford homes. They’re now locked in — and most can’t afford to sell because they can’t buy again at 5–7% with these prices. Their DTI (debt-to-income ratio) would no longer qualify them. So you’re looking at: A frozen market: Sellers don’t want to sell, and new buyers can’t afford the new math. If COVID never happened and the Fed didn’t slash rates to near 0%: Housing prices would likely be lower. DTIs wouldn’t have been maxed out at artificially low interest rates.
We wouldn’t have had a flood of buyers overbidding on everything. Let's not forget what the market was like before covid.

These people have no idea what they are talking about. 100% your a fool if you buy anything right now. In less then two years you will be able to buy a home for half of what the market is asking now as banks fail and home owners bail in foreclosure.

It not the interest rates , it the Prices are too high

You’re wrong! Price will come down, regardless of the rate drops! Nick my words! I said this a year ago, and people called me crazy back then, and look now, most homes have come down. They start with seller concessions and then followed by price drops! Reason is, most people are locked into a 3%’s rates, and can’t afford to sell and buy high, once the rates drop, millions of people will sell to cash out and pocket profits and buy another home less priced!

When rates go down prices do NOT historically go up. Historically they go down because inventory usually floods market with lower rates. If you go back prices only went up like twice with interest cuts.

When did we declare war on the sound of the letter “T” when it occurs in the middle of a word?

Cuidao que lo mismo deberíamos aprender de esta gente. Que tragamos y tragamos sin parar. No estoy de acuerdo con lo que piden, pero ojo, que a los de arriba se les puede dar la vuelta a la tortilla con la sustitución

Prices are too high!!!

Price is the issue, yes rates will drive people in the direction but ultimately for the market to start moving again prices must come down substantially. 8+ income to price ratio cannot be sustained. 3-4 ratio is where we need to be. Rates are where they should be in reality.

The housing market feels crazy right now—houses are ridiculously overpriced and just sitting there for months. I can’t help but think we’re heading for a major bubble burst. I’m trying to figure out how to turn $250k into $1m+ so I can buy a decent home for retirement.

Your slaves are in trouble... you're in trouble 😮. If your not the wealthy controling the government depending on the government wont end well for you.