Comments by "worn down" (@worndown8280) on "The Fed Just Started a MORTGAGE DISASTER in the 2022 Housing Market" video.

This isnt where it hit us. Once employers start reducing payrolls, because of higher loan rates, you will see more houses come on the market as people are forced to short sell or sell that rental property or vacation home, and thats when the slide to the bottom begins. That will be about 6 months to a year.
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@MT-qq6id Not if the fed stops its bond buying. They, the people you state, wont have the money to do it. And as the Fed deleverages, which it has to at this point, any new bonds will have to be picked up at seriously reduced prices. It wont make it worth the returns. Have you looked at most hedge funds right now, they are getting slaughtered. They cant even match market returns. In short, I am very much in disagreement with you on your assessment. But I suppose we shall see in a year or two.
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@jesse_- raising interest rates don't just increase home prices, they cause businesses to restructure, reduce payroll and cut pay. Most Americans don't have 1k extra a month. Few have an extra 100 a month. Most people are far over leveraged. And as this recession takes hold, many are going to be forced to short sell.
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Interest rates arent a tool to use to punish mortgage holders. They are a tool to check inflation. We have some inflation now that is monetary, but most is supply side and political issues. The Fed needs to raise interest rates. But it will always do what it does best, overshoot. The Fed should have raised rates 2 years ago.
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@righteousone1 No I see that in various markets too. 160k price markups and its like ummm, what are these people thinking. I mean I know what they are thinking, but they are a year late to the party. With home sells in California stalling and interest rates rising all that California inflation buying is going to go bye bye. I do feel bad for folks who bought at the peak. I do hope they like what they bought though. I never try to beggar my neighbor.
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The city, county, and state tax collectors disagrees with you.
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@jesse_- it's very field specific. Jobs most normies can't or won't do.
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@andrewcarlson2178 Only as long as home sell in California. And that tap has been turned off. But you arent incorrect as to a cause in the increase of home prices. But all thats over. Now the buyers remorse will set in. It did in 2004 and 2005 as well. The question is will municipalities be able to take the hit to their already weakened tax revenue streams.
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