This is a YouTube video titled "Outlook on Today's Mortgage Market" containing a monologue or presentation from October 17, 2022, discussing historical and current trends in inflation and mortgage rates, and offering advice for home buyers on timing purchases and refinancing. The content is a single-speaker explanation without multiple participants.
To help with what to expect in the mortgage world for the next few months, I did a little bit of digging. So if we go back through history, when inflation was up 7% in the 70s, mortgage rates also were up 7%. The Fed raised their rates, cut inflation down by 9%. Mortgage rates dropped by 7%. Similar thing in the 90s, inflation was up 2, mortgage rates were up 2%. Fed raised their rate, cut inflation down by 3, mortgage rates came down by 3. Then we flash forward to today, inflation's up 8% on the year, mortgage rates are up 4 or 5%. Fed's increasing their rates to drop inflation. So we should see inflation continue to get under control. The last two months were actually a flatline number. So it's getting back in the right direction. But keep in mind the inflation reports are a 12 month rolling average. So it wasn't until, you know, last spring when we saw really hot inflation. So we have to get to this spring to be able to replace those numbers. And that's where you'll really start to see a boost. But as a buyer, do you wait till spring to get those mortgage rates when they do drop? Because there's a very high likelihood that they do in the next handful of months. Because we saw when mortgage rates were lowered not that long ago, the buying frenzy was everywhere. House prices were skyrocketing at record levels. So you got to kind of pick your poison. The best combination, buy today's house price while the market's cooling a little bit. Refinance when the rates go lower. That's your best savings. But the good news is, helps on the way for mortgage rates.
