Tax Smart Real Estate Investors Podcast
295. The Future of Housing: How Interest Rates and Labor Shape Real Estate with Logan Mohtashami
Oct 15, 2024
Logan Mohtashami, a renowned housing analyst, dives deep into the dynamics of the current real estate market. He discusses how mortgage rates are influenced by labor data and Federal Reserve policies. The podcast highlights the impact of supply and demand on pricing and potential interest rate cuts that could reshape market affordability. Logan also shares insights on demographic shifts affecting housing demand and provides strategies for investors navigating today’s challenging market conditions.
56:17
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Quick takeaways
- Interest rates and labor market trends significantly influence mortgage rates, impacting housing demand and affordability dynamics.
- The ongoing supply-demand imbalance in the housing market, particularly the shortage of available homes, is leading to persistent price appreciation.
Deep dives
Impact of Interest Rates on Housing Markets
The recent interest rate cuts by the Federal Reserve have led to a decrease in mortgage rates, which typically influences housing demand. When mortgage rates fall, it generally makes homeownership more affordable, thereby stimulating both new and existing home sales. However, the interaction between the 10-year yield and mortgage rates shows that for rates to substantially decrease, the labor market must weaken. Current conditions indicate a struggle between higher mortgage rates and the potential for growing housing demand, particularly for new homes, which can offer lower rates for buyers.
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