Market sell-off is causing unexpected turnaround in mortgage rates

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CNBC’s Diana Olick reports on how the recent market sell-off is impacting the housing markets.

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Ballistic Bob says:

Housing boom 2.0…the last one started in 97 just as that bull market was topping…the equity market bottomed in ‘03 and the housing market topped in ‘06…the hottest part being ‘02-‘05. The lending infrastructure is back in place now that banks can resell packaged mortgage backed securities again…and the mortgage rates are lower…the banks have higher capitalization. The minuses are lower wage to cost of living…much lower…and a huge shadow market of reit owned properties that will hit the market…

IMA RUSSIAN says:

Have the presidents new SALT and $750,000 deduction limit forced home prices back into true market value?
Will the NYC $2 BILLION mansion tax restore sales?

tubeytubby says:

yeah go buy that $400K home and pay for a $300,000 mortgage and be happy saving $25 a month when that home falls to 350K in 6-12 months and wipes out 50K of your equity, that $25 a month savings gonna be huge!

JAY JAY says:

The federal government has dramatically expanded its exposure to risky mortgages, as federal officials over the past four years took steps that cleared the way for companies to issue loans that many borrowers might not be able to repay. Now, Fannie Mae, Freddie Mac and the Federal Housing Administration guarantee almost $7 trillion in mortgage-related debt, 33 percent more than before the housing crisis, according to company and government data. Because these entities are run or backstopped by the U.S. government, a large increase in loan defaults could cost taxpayers hundreds of billions of dollars. 

In 2019, there is more government-backed housing debt than at any other point in U.S. history, according to data from the Urban Institute. Taxpayers are shouldering much of the risk, while a growing number of homeowners face debt payments that amount to nearly half of their monthly income, a threshold many experts consider too steep. 

Roughly 30 percent of the loans Fannie Mae guaranteed last year exceeded this level, up from 14 percent in 2016, according to Urban Institute data. At the FHA, 57 percent of the loans it insured breached the high-risk echelon, jumping from 38 percent two years earlier. 

The binge in high-risk lending has some executives and regulators on edge and could grow problematic if the economy continues to weaken or enters a recession, as more economists are predicting could happen within a year. Two Freddie Mac officials told a government inspector general earlier this year that certain loans they had been pushed to buy carried a higher risk of default, and problems could multiply when the economy slows. This woman always trying to present a rosy picture on the housing market. This housing bubble is worst than the last one. Please hire someone who will present the facts and not proganda.

Tony Winikerei says:

president trump just raked in 30. billion u.s dollars for our economy.all due in part to his tarriffs on china.now thats what you call a president doing the hard yards for his country and thats only the start theres more good news for overseas investers wait and see.😊👍👌go trump 2020

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