Here’s why low mortgage rates need to end
HousingWire Lead Analyst Logan Mohtashami joins the HousingWire Daily podcast to talk about why low mortgage rates need to end. During the interview, HW+ Managing Editor Brena Nath interviews Mohtashami on his most recent article, “We need higher mortgage rates to cool the housing market.”
In his article, Mohtashami states, “For 2021, we need to root for a repeat of what happened in 2013-2014 and 2018-2019. Home prices have caught up to per capita income, just like what we saw in 2002. However, mortgage rates are lower today, and demographics better. I feared this could be the case and it’s part of why I wrote the Chaos Theory for HousingWire back on Feb 3, 2020. I wrote that if COVID-19 hit us, stocks, the economy, and bond yields would fall, and this means mortgage rates would go down with it.”
Here’s a preview of the podcast interview, as Mohtashami comments on today’s low mortgage rates and rising home prices.
“We came from the weakest housing recovery ever, to now this period in time, and if mortgage rates are low, which they should be, you’re going to have the best housing demographics during this period, but also you’re going to have the lowest mortgage rates. Think of it as King Kong and Godzilla, the two titans of housing that drive housing historically, are both coming into this period and time. And there’s a problem with that. You can have unhealthy home price growth when you have these two titans coming in together.
HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.
Articles covered in this episode: