This is a YouTube video titled "🚨 Inflation and Mortgage Rates 🚨" featuring Derek McGowan explaining the historical correlation between inflation rates and mortgage rates from the late 1970s through the post-pandemic period. The content is a monologue focused on economic trends related to inflation and mortgage interest rates.
Late 70s, inflation doubled from 7% to 14%. This bumped mortgage rates similarly from 12 to 18%. Then as soon as inflation dropped back down, rates came down with it back down to 12%. Then in the late 90s, inflation went from 1 and a half to 3 and a half. It bumped mortgage rates from 7 to 8 and a half. As soon as inflation dropped back down to 1%, then mortgage rates dropped from that 8 and a half to 5 and a half. Then you have today's market where inflation boomed from 1 and a half percent to 7% now after the pandemic, and this has bumped mortgage rates from the mid twos to the mid threes. This is a direct correlation between inflation and mortgage rates.
