The David Greene Show Mortgage Monday - Five Reasons Mortgages Will Increase | Episode 59
May 5, 2025
In this discussion, Christian Bachelder, a mortgage loan officer at The One Brokerage, shares insights on the looming increase in mortgage rates amid escalating trade wars and inflation concerns. He explains how global economic relations, especially with China and Japan, could directly affect U.S. treasuries and mortgage rates. The conversation delves into the intricate dance between the Federal Reserve's policies and the stock market's response, raising awareness of the interconnectedness of these financial dynamics.
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Monitor Treasury Sales Effects
- Mortgage rates tend to rise if China or allied countries sell U.S. treasuries, reducing bond buyers.
- Watch international bond sales as they affect mortgage rates closely tied to 10-year treasury yields.
Japan's Greater Bond Holdings
- Japan holds more U.S. debt than China, and their actions could impact rates even more.
- Angering multiple allied countries risks a broader impact on financial markets beyond just China.
Tariffs Boost Mortgage Rates
- Inflation caused by tariffs could force the Fed to raise interest rates to combat rising prices.
- Higher interest rates make mortgages more expensive, directly affecting affordability.