📰 Source: youtube | misesmedia

✍️ Original author: misesmedia

⬆️ score: 2,452

Mortgage rates are at historically normal levels. They are not “too high.” On the other hand, home prices are too high after years of subsidy from artificially low rates and government intervention. The answer to the stagnating market is to cut prices.

0:00 Intro — are mortgage rates really the problem? 0:32 The 10-year auction at 5.3% 1:26 Why upward pressure on yields isn’t a blip 2:17 How mortgage rates track the 10-year 3:08 From under 3% in 2020 to 7.4% today 3:34 Pending sales down 9%, and the housing deep freeze 4:03 The payment math at 7% versus 3.5% 4:28 The lock-in effect, and first-time buyers giving up 4:53 There’s nothing historically high about 7% 5:48 The lock-in effect is real, all else being equal 6:15 The other half of the equation: prices 7:06 Begging the Fed instead of letting prices fall 7:58 The problem isn’t rates, it’s that prices are too high 9:18 Builders are already cutting, and existing sellers will follow

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