The Fed has created major issues in the US economy causing mortgage rates to hit the highest levels in 23 years as bond yields are at their highest levels in 8 months while the housing market continues to push house prices higher. At the same time, Fitch downgrades the US debt on debt ceiling drama and governance worries. Can the United States really avoid a recession with a soft landing? Should you Buy Now or Wait for a Housing Crash? In this video, we discuss the latest from The FED, CPI Data, Mortgage Interest Rates to help you make sense of the 2023 Housing Market.
⏩ The 2023 Housing Recession Just Went From WORSE To WORST⏩
HOME BUYER RESOURCES:
✅ – Get a Personal Referral to a Mortgage Expert or a Professional Realtor –
🏠 – First Time Home Buyer Course –
🎙- The Educated Home Buyer Podcast –
Spotify –
Apple –
Connect with me 👇
Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty
➡I N S T A G R A M ➳
➡T I K T O K ➳
#housingmarket #realestate #housing…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The Federal Reserve, commonly known as the Fed, is a powerful institution responsible for overseeing monetary policy in the United States. Its decisions have far-reaching implications for the nation’s economy and financial markets. Recently, the Fed made a significant move that has the potential to flip the projected recession in 2023.
Intended to control inflation and foster economic stability, the Fed has a dual mandate of achieving maximum employment and maintaining price stability. One of the primary tools at its disposal is the benchmark interest rate, known as the federal funds rate. When the economy is growing too fast and inflation becomes a concern, the Fed raises this rate to cool down the economy. Conversely, when the economy is weak, the Fed cuts rates to stimulate borrowing and spending.
In response to the COVID-19 pandemic, the Fed cut interest rates to near zero in March 2020. This move aimed to support the economy in the face of widespread job losses and reduced economic activity. Additionally, the Fed implemented various unconventional monetary policies to inject liquidity into the financial system and stabilize markets.
With the ongoing recovery and vaccination efforts globally, economic forecasts have become more optimistic. However, concerns regarding inflation have sparked speculation about when the Fed may start raising interest rates again. Until recently, the general consensus was that the Fed would not begin tightening its monetary policy until 2023 or later. However, the Fed has now surprised many by suggesting it may raise rates as early as 2022.
During the Federal Open Market Committee (FOMC) meeting in mid-June, the Fed hinted at the possibility of two interest rate hikes in 2023. This move stunned the market and led to a significant reevaluation of economic projections. The shift in the Fed’s stance can be seen as an indication of their growing confidence in the recovery’s strength and their increasing worries about potential inflationary pressures.
By hinting at earlier rate hikes, the Fed aims to preemptively manage inflation and avoid overheating the economy. While this move may signal a more optimistic outlook for the economy, it has also sparked concerns among investors and businesses. Higher interest rates can impact borrowing costs, and tighter monetary policy can lead to reduced spending and investment.
However, it is important to note that the Fed’s actions are data-driven and subject to change based on evolving economic conditions. The immediate impact of the Fed’s announcement has been a surge in bond yields and a decline in stock prices. Still, it remains to be seen how the markets will react in the long term.
The Fed’s decision to potentially raise rates sooner than expected indicates their vigilance in maintaining price stability and ensuring a balanced economy. As the recovery continues, the Fed will closely monitor inflation indicators, employment figures, and other economic data to make well-informed decisions about monetary policy.
Whether the projected recession in 2023 will indeed be flipped or not will depend on numerous factors, including the effectiveness of vaccination efforts, the pace of economic growth, and the ability of businesses to adapt to changing conditions. While the Fed’s actions can influence the direction of the economy, they are just one piece of the puzzle.
In conclusion, the Fed’s decision to potentially accelerate rate hikes has sent shockwaves through financial markets. Their newfound concern about inflation has prompted them to consider actions that could impact the economy’s trajectory, potentially flipping the projected 2023 recession. Ultimately, the success of these measures and the overall economic recovery will depend on a complex interplay of factors that extend beyond the Fed’s actions alone.
Nominal inflation has gone down, but core inflation is still insanely high, especially for our youth. Food prices are all up, housing is still sky high, cars are super expensive, gasoline is way more expensive and much more. The FED needs to keep hiking, shrink the balance sheet substantially, and stop money printing for good!
Lack of new construction?
Mortgage rates are quickly going up to levels not seen for 20 years. At the same time, sellers are making significant cuts to their selling prices. DO NOT BUY NOW. Be patient and hold-off. You’ll get considerably more for your money waiting. Good luck everyone!
Ffs…Inflation, higher interests, wages not matching economic growth, shadow housing, renting nation, slow storage, horrid conditions, horrid environment, Crazy HOA, needing to work more to make less…I'm about to leave this ducking county. I should not be this difficult to get a God damn home. Just ignoring all the social divide issues and violence this country is going to shit.
These are fantastic takes, I was really hoping for my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made a fortune from the recent 2008 recession and I wondered if such success rate could be achieved in this present market. Any recommendations?
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to profit during such economic time.
The Fed is full of sh!t. I cant wait till the can of worms is opened for Biden and all his crooks so we can prosecute them all for destroying the country.
Lawrence Young, was wrong even during the pandemic. No lack of supply. It’s was investors just as in 2008. I realized why movies like the big short hides the investor elements, but the paper the Fed published about 2008 being about investors, not home owners, is hard to find online. It’s the same reason why the bank give DSCR loans. It gets around the Dodd Frank Act and keeps the money supply expanding. Governments and banks must have inflation. When the money supply (credit) contracts money starts disappearing and deflation and recession can happen quickly. Banks and governments are hiding that no matter what is said or done they can never stop printing and giving more credit out tomorrow than today. They are lying to you about housing so they can get out. Big firms are selling the same way they sell their large stock positions. A little at a time until prices turn down a little than a big block and they hold until an up swing and then they sell a lot more.
Most high earners have a life that is about a bit more than just salaries…. Leaving all family and friends behind just to grow your money through profitable investment is knowledge.
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
Lawrence Yun is a cheerleader for property prices, as he was post 2008, (further 4 years of declining prices) pay me enough and I'll tell you prices are going to the moon
Great video
Jeb you make so many good points. Im just absolutely dumbfounded on how these prices can be sustainable. Im probably wrong and just a poor hopeful dude.
Wages increasing? Lol. At least not nearly at the rate they need to be to survive
MSM news is all under consensus that they no longer expect a recession; therefore I'm 100% inclined to believe the exact opposite of these fucking gaslighting crooks.
I hear you, but then I check the FRED median home price which was updated July 26th. And it’s down 13% from peak of last July.
Also, it’s cheaper to rent in all but 5 areas in the US and rents have been going down in most places.
If you multiply your yearly rent x 5.
Renting really is buying patients to save enough to qualify for a house mortgage.
As a bear I have to say you’re correct until proven otherwise
Lol I wish houses were that cheap in charlotte.
Inflation dilutes savings and when folks get surprised that things get more expensive every year, that’s by design. Your $1 now is not going to be the same $1 in 10 years since it loses value over time. So when folks wait for years and years, then it seems counterintuitive to the nature of the money system. But to each their own…