Comments by "worn down" (@worndown8280) on "MAP of the Cooling Housing Market" video.

@Jeff__M So just in my local area I have three homes re enter the market that were purchased in march. All three homes were bought by out of state workers who thought they would be able to tele commute. The amount of people who did this is off the charts. When you throw in stimi checks, some folks got 12k checks and at 2% interest rates a lot of people went home shopping for additional properties. I am seeing more of these homes, partially renovated put back on the market. That said ultimately people cannot pay more for a home more than they earn, and with inflation soaring ever higher, that amount is less and less each day. The housing market has lost all its inertia at 5% interest rates and 8% inflation. By the end of the year the interest rates will easily be 7% and inflation 11%. Housing prices will have to go down. And then there are the boomers dying who hold 44% of all single family homes. Then there is the recession with job loss, hour cuts and pay cuts. I can keep going. And as far as the MBS's no one wanted to buy them in the first place, which is why the Fed had to. Once it sells them it will have to do so at a loss. But this extra competition will make banks have to increase rates to make their new securities more attractive to purchase in a real market.
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@xiangli2452 Right, that is the big question. And we will find out in a few days. One will be a lot of pain quick, which is better for everyone; business, governments, the regular joe. Holding on to them so they just roll off will make the pain so much longer. The Fed is totally in a pickle now. The never should have lowered rates in 2018. That made everyone thing the Fed is always going to back the markets. Powell needs to be flogged then hanged from the nearest light post. I am an Xers and retired early, my heart goes out to Millennials who got screwed in 08 and now are about to again. That generation is never going to be able to recover. They are going to have to raise rates so high now it will cripple the economy.
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interest rates wont fall. By the end of the year inflation will be in double digits. The Fed is so late to this party it should be criminal. And the longer inflation sticks around, the less money people will have saved and the more they will spend on needed items which even if rates remain unchanged, they wont be able to afford houses at these prices. Interests rates will be back to the real neutral rate at about 8% before this is done at the very least.
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Blackrock has been buying homes since 1988. They only own like 60k of them. Thats a rounding error in the housing market.
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