Why a Tiny Rate Hike Can Topple a Housing Market
About this video
Discover how a small 0.25% rate hike can lead to a significant $40,000 drop in home prices in Austin. Learn the mechanism behind mortgage rate changes and their impact on the buyer pool, affecting local listing prices. Understand why watching the buyer pool is crucial in predicting market shifts. Chapters: 00:00 The $40,000 Mystery 00:16 Monthly Payment Impact of Rate Hikes 00:32 The $120 Rule 00:48 The $60 Shift 01:03 Who gets priced out? 01:19 The marginal buyer 01:35 Watch the buyer pool 01:51 The comp cascade 02:07 Austin's 6% slide 02:22 Watch the buyer pool 02:38 11 Hikes in 17 Months 02:52 The Pool Is the Story 03:08 Every hike made mortgages more expensive 03:21 Existing Home Sales Drop 18.9% in 2023 03:36 30-Year Fixed Mortgage Rate Peak 03:52 Watch the Buyer Pool 04:08 The $40,000 Spread 04:24 Next: Yield Curve 04:40 Income Thresholds Shift 04:56 The Ripple on Bidding 05:12 The Psychology of Falling Prices 05:28 The Sales Volume Drop 05:44 The Local Disconnect 06:00 The Real-Time Signal Sources & further reading: ā¢ Freddie Mac Primary Mortgage Market Survey ā http://www.freddiemac.com/pmms ā¢ Federal Reserve Press Releases ā http://www.federalreserve.gov/newsevents/pressreleases.htm ā¢ National Association of Realtors Research ā http://www.nar.realtor/research-and-statistics ā¢ Redfin Data Center ā http://www.redfin.com/news/data-center ā¢ Bankrate Mortgage Calculator ā http://www.bankrate.com/mortgages/mortgage-calculator/ ā¢ U.S. Census Bureau Housing Data ā http://www.census.gov/housing/hvs/
From the video
More from Macro Plainly
Japan Bought 5 Trillion Yen of Foreign Assets in Two Weeks: Why Now?
Why Mass Layoffs Boost Stock Prices Instantly
Rent as a Recession Warning
The 2020 Negative Oil Freakout
Insurance Exits Erase Home Value
The $250 Tariff Mystery: Why Retail Prices Don't Jump
Why Unemployment Drops But You Still Feel It
