Also in this playlist...
This transcript is automatically generated
-- talk about the housing industry by US mortgage rates for a thirty year fixed.
I had to your hot right now -- have -- -- four point 51%.
So if you're looking to purchase a home this begs the question what does it mean for me well our next guest has the answer we're join by real estate expert.
And markets now favorite George Mason University professor financing Anthony Sanders welcome sir great to see you again.
-- -- I think that this is quite a pop from 429.
Prior week 5451.
On thirty year -- -- and that's that's a large -- so where do you -- rates headed from here.
Well we hear it all started may first we'll call this the made a massacre -- from treasurys started rising mortgage rates -- that.
And they've just been going up -- up -- -- they've eased off a little bit less -- week or so but.
The treasury auctions whistle showing upward mobility in terms of rate so looks like they're gonna keep going.
So what -- these higher rates.
Well let me back up going up what does that mean Anthony so if you've got an average on the thirty year the ten year average -- five point 3% will -- be retracing that level soon.
Well the answer is yes is that Charles Plosser from the Philly Fed came out today and this -- said that.
He thinks all the Q we'll be gone by the end of the year and that's really gonna generate a -- pop so it it's the F -- momentum is there.
So you're talking about -- low weaker demand for that treasury auctions to makes me more about that -- -- why we should follow that.
The treasury markets for indications about where the mortgage market is headed and what kind of time -- areas.
Well every week and Freddie Mac comes out with their thirty year -- mortgage survey.
And it's very highly correlated with the ten year treasury rate.
So if you see the -- tenure treasury rate rise you'll probably see on average the Freddie Mac its mortgage survey -- whether.
Other one -- like the watches the treasury auctions which the thirty day was yesterday -- and the tenure was the day before.
That those -- the big kind of banner headlines and both those rates were up.
You have -- -- what does all of this these higher rates than you do for housing affordability.
So we know that prices had a huge jump right over 12% in most recent survey so.
Our home sellers now gonna have to lower the price because of these creeping rates.
It's strange the answer is no because we have so many investors still on the market we.
Chinese nationals coming over her buying lots of housing in California.
Arizona -- -- they're sold a lot of the -- investor funding pushing up markets New York City.
House prices going through the roof and that's not due to conventional mortgages for consumers -- tell -- But it's bloody regional -- pointing at me because if you look at the Mortgage Bankers Association reports you've got a decline -- mortgage applications refinancings as well.
So how how how do you understand how do you synthesize all the -- and what it means for whether or not housing recovery is now stalling.
-- traditional housing recovery -- done through Freddie Fannie the FHA.
And just mortgage lending is actually going down when rates go up it almost looks like a cross -- so that parts bad.
But then and actually if you saw the earnings announcement from wells Fargo's today wells Fargo's showing up -- -- volume as down as well.
She -- JPMorgan Chase -- -- an increase but but.
A lot some -- that was before the may -- massacre.
So we'll have to see with the data looks like next quarter.
For JPMorgan Chase to say that they -- the was misleading signal on mortgages and so.
It's going to be a lot of investors out there it's but it's not coming from the traditional consumer all played out.
Much -- we're gonna have to have an update with -- Anthony because these factors are really.
Fast motion thanks so much Anthony thanks lord we can do.
Filter by section