Mortgage Rates and the Lock-In Effect

Paula explains 30-year rates around 6.2%, diverging forecasts, and how low older mortgages reduce mobility.

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Episode notes

#677: Happy New Year! We're kicking off 2026 with a reality check on where your money stands right now.

The Good News: Gas prices dropped below $3/gallon. Inflation cooled to 2.7%. The Fed cut rates again. GDP grew 4.3% (surprisingly strong). Gold hit $4,500 an ounce. And 19 states raised minimum wages.

The Not-So-Good: Health insurance jumped 10-18%. Unemployment ticked up. Mortgage rates are stuck around 6.2%. And 80% of homeowners are unlikely to sell because they locked in rates below 6%.

The Big Picture: The stock market is outperforming the economy.

How It Affects You: I call it "millionaire malaise."

Your 401k looks great. Your home equity is through the roof (no pun intended). If you bought before 2022, your assets look good on paper.

Yet you're stressed out at the grocery store.

Everything costs more – insurance, groceries, everything except gas. Jobs are stagnant. People are stuck.

We're experiencing the difference between wealth and income.

This is 2026: Wealthy on paper. Broke at the checkout line.

Whether you're new to money management or a long-timer looking for clarity, this episode cuts through the noise to tell you what actually matters for your finances this year.

Download the free resource: AffordAnything.com/financialgoals

Timestamps

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(01:33) Warren Buffett's retirement

(04:45) Unemployment at 4.6% in November

(06:11) JOLTS data and November jobs data

(08:04) Gold hitting record highs above $4,500/oz in December

(11:26) US inflation at 2.7% in December

(20:01) Commerce Department releases GDP numbers at 4.3%

(23:08) Gas prices hitting record lows

(25:20) Mortgage rates holding around 6.20%

(30:26) Minimum wage increases in 19 states

(32:23) Health insurance premiums up 10% (employer) and 18% (individual)

(35:15) $12 billion USDA aid package for farmers

(37:16) Workers over age 50 listing more disruptive tech skills on resumes