This Is What an 8% Mortgage Means For the Housing Market

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 19 October 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Mortgage rates have surged over the last couple of years. But surprisingly to some, actual home prices in the US have been resilient. This has created a historic shock to affordability, with a typical monthly payment on a home purchase soaring. But how long can this go on? Particularly as rates continue to rise, with a 30-year fixed rate mortgage near 8% now, we speak with Morgan Stanley housing strategist, and past Odd Lots guest, Jim Egan, about the impact of this rate environment. He explains why we may be at the limit to how far house prices can rise, and why at this point, the key variable is whether more supply comes onto the market.

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0:54.8	Hello and welcome to another episode of the Adlots podcast.
0:58.2	I'm Tracy Alloway.
0:59.2	And I'm Joe Weisenthal.
1:00.8	Joe, did you see that a national association of homebuilders survey?
1:06.9	I actually didn't see the number, but I think it was bad, right?
1:10.1	Yeah, it wasn't great.
1:11.8	So the sentiment of the homebuilders is falling, which is kind of noteworthy,
1:18.7	because towards the beginning of the year,
1:21.2	we saw a little bit of a pickup, a little bit of optimism.
1:24.0	And we did see some new construction, and that started to feed into overall housing supply.
1:30.2	But fast forward to October 2023 rates are going up again.
	...

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