
Lead-Lag Live
Deconstructing the Enigma of Mortgage Rates: A Comprehensive Analysis of the US Housing Market with Len Kiefer
Oct 19, 2023
The podcast features Len Kiefer, Deputy Chief Economist at Freddie Mac, discussing the rapid surge in mortgage rates and its impact on the US housing market. Topics covered include the historic volatility in rates, its effect on home sales and consumer debts, and a comparative study with the 1980s. The podcast also delves into demographic dynamics, the lock-in effect of mortgage rates, reduced homebuilding activity, and the nationwide housing shortage. It concludes by exploring the influence of second homes, vacant housing, short-term rentals, and remote work on the housing market's future.
46:27
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The recent surge in mortgage rates poses a challenge for the housing market, leading to a decline in home sales and uncertain rebound prospects.
- Forecasting the housing market is complicated by unique factors like record-low interest rates and the influence of remote work on housing demand.
Deep dives
Impact of Rising Mortgage Rates on the Housing Market
The recent surge in 10-year Treasury yields has led to a sharp increase in mortgage rates, which is posing a challenge for the housing market. Home sales have declined as a result, and the outlook for a rebound is uncertain. The speed of the rate increase is unprecedented, making it difficult to predict the market's response. The housing market is facing a potential slowdown in transaction volumes, particularly among first-time buyers. While there are still potential buyers in the market, higher rates will increasingly price them out. The housing market's performance will depend on factors such as employment levels and the stability of the broader economy.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.