Bond “Vigilantes” Hold Interest Rates Hostage as Rate Cut Hopes Shrink

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 9 January 2025

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Interest rates are up yet again, even after multiple Fed rate cuts in 2024. What’s happening, and how long can this last? Bond investors worry inflation is here to stay. This concern forces bond yields—and mortgage rates—to grow. Can Jerome Powell and the Federal Reserve do anything to ease investors’ minds or do we have a long road of high rates ahead of us? We’re getting into it in this headlines show! Don’t let rising rates stop you from building wealth; we have more stories that showcase an optimistic future outlook for real estate investors. From an incoming commercial real estate recovery that has been multiple years in the making to sellers finally submitting to the market and putting their homes up for sale, it’s not all bad news going into 2025. One natural disaster-ravaged state finally puts its foot down and forces insurance companies to write policies in risky areas. Is this a much-needed government intervention, or will this shift the burden of high insurance costs onto investors and homeowners? We’re sharing our opinion in this episode! In This Episode We Cover The “bond vigilantes” that are keeping yields high and rates above seven percent Why, even after multiple Fed rate cuts, interest rates continue to rise The commercial real estate recovery and whether we’re at the bottom for this struggling asset class Pricey home insurance premiums and the one state that’s forcing new policies to be written Housing inventory updates and a sign that owners are finally ready to sell their low-rate homes And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find Investor-Friendly Lenders Dave's BiggerPockets Profile Henry's BiggerPockets Profile James' BiggerPockets Profile Kathy's BiggerPockets Profile The Fed Cut Rates Again, But Could It Be the Last One? Treasury yields end 2024 with biggest yearly surge since historic 2022 rout California will require home insurers to offer policies in high-risk wildfire areas Will 2025 be a pivotal year of recovery in commercial real estate? Redfin Reports New Listings Rise 8%, Giving the New Year’s Buyers More Homes to Choose From Run Your Real Estate Numbers the Right Way with Dave’s Book, “Real Estate by the Numbers” Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-285 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Why do treasury yields keep surging? How are homeowners ensuring against more and more extreme
0:05.9	weather? Will 2025 be a pivotal year of recovery in commercial real estate? And what are new
0:12.1	listings doing as we kick off 2025?
0:20.0	Hey, everyone. it's Dave.
0:21.4	Welcome to On the Market, the real estate news and economic show where we like to have fun while keeping you informed.
0:29.1	And we're starting our year off with our first headline show, which means that Henry, Kathy, James are all here.
0:37.1	Thanks all of you for joining. Henry, how was your
0:39.4	holiday? Oh, it was really good, man. I got little kids deal, so like the magic of Christmas is like a real
0:44.7	thing. So it's super fun. Nice. Glad to hear it. James, I know you just got back from Japan. How was it?
0:51.2	It is amazing. Tokyo is a phenomenal city. I got to say, it blows my mind how
0:56.8	clean that city is. You walk around, there's no garbage cans, but there's no garbage anywhere.
1:01.3	And then we hit some of the best powder snow I've ever seen. So overall, Japan 10 out 10 for visiting.
1:07.6	Kathy, meanwhile, you were just like looking at great snow because you were trying to ski,
1:11.8	but the whole resort was on strike.
1:13.6	Yeah, yeah, you could look at the snow by standing in a two-hour-long line.
1:19.1	Lovely.
1:20.0	So I was just looking at James photos instead of Japan and putting that on my bucket list.
1:24.8	Well, I'm glad to have you all back.
1:26.6	Hopefully everyone listening also had a nice holiday season and a happy new year. We have had a few episodes
1:32.2	come out, but this is the first one we're recording here in 2025. A lot has happened over the
1:36.8	break. So we need to get on top of all of these headlines. So let's jump into them. James,
1:41.7	what headline did you bring for us today? So the article is from MarketWatch and it's titled Treasure Yields in 2024 with the biggest yearly surge since historic 22 route.
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