This Is What 7% Mortgages Will Do To the Housing Market
Odd Lots
Bloomberg
4.4 • 1.6K Ratings
🗓️ 10 October 2022
⏱️ 53 minutes
🧾️ Download transcript
Summary
Thanks to the surge in mortgage rates, we've seen a historic collapse in mortgage affordability. New homebuyers are facing a massive sticker shock relative to what they could have paid just six months ago. So does this mean that house prices are due for a crash? On this episode of Odd Lots, we speak with Morgan Stanley housing strategist Jim Egan about what comes next. Egan argues that while high mortgage rates will discourage buyers, there won't be a significant unlocking of supply, since very few people will be forced to sell. It will be housing activity that sees the biggest change.
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| 0:36.0 | Full disclosures can be found at www.public.com-slash-t-build-podcast. |
| 0:57.4 | Hello and welcome to another episode of The All Thoughts Podcast. I'm Tracy Alloway. |
| 1:25.5 | I'm Joe Wyzenthal. |
| 1:27.0 | Joe, there's nothing better than a good chart. |
| 1:30.2 | What chart do you have for us today? What chart are you going to ask listeners to |
| 1:34.6 | visualize in their mind since they can't actually probably look at it right now? |
| 1:38.8 | What chart should they be thinking about? |
| 1:40.4 | I actually have a bunch in mind. There are some extreme charts at the moment, |
| 1:45.3 | given everything that's been happening with markets. I'm thinking in particular, |
| 1:48.7 | bond market volatility, what we saw with sterling and gilts very recently. |
| 1:53.1 | But if you're looking for the most interesting charts at the moment, |
| 1:56.9 | I got to say I really think the housing market and the mortgage market are where it's at. |
| 2:02.2 | I completely agree with you. The Fed is raising rates to slow down the economy to beat inflation. |
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