• 435: Freddie Mac Economist Reveals Connection with Mortgage Debt & GDP; What Every Homeowner Must Know!

  • Feb 19 2024
  • Length: 41 mins
  • Podcast
435: Freddie Mac Economist Reveals Connection with Mortgage Debt & GDP; What Every Homeowner Must Know! cover art

435: Freddie Mac Economist Reveals Connection with Mortgage Debt & GDP; What Every Homeowner Must Know!

  • Summary

  • Jason talks about the importance of understanding the relationship between household real estate value, mortgage debt, and GDP. The presented chart indicates increased equity and decreased mortgage debt as a percentage of GDP, highlighting a more stable housing market. He touches on the benefits of leveraging properties and he analyzes a chart on median sold prices based on bedroom count, revealing significant appreciation in lower-priced properties.

    Jason welcomes Len Kiefer, Deputy Chief Economist at Freddie Mac, as they discuss the current state of the real estate market. Despite concerns about rising interest rates, Kiefer highlighted the resilience of the U.S. economy, emphasizing the stability of the housing market throughout 2023. While acknowledging a potential slowdown in consumer spending due to higher rates, Kiefer pointed out that the housing market has seen low transaction volumes and reduced refinance activity, impacting affordability. He also discussed the unique situation of homeowners with ultra-low mortgage rates, estimating the value of their locked-in rates at around $55,000 per borrower. Kiefer predicted a gradual thawing of the market as consumers adapt to the new interest rate environment. He also underscored the importance of considering broader economic factors and demographic trends in understanding the housing market's dynamics.

    #RealEstate #HousingMarket #EconomicOutlook #Millennials #HousingMarket #RealEstate #EconomicAnalysis

     

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