High mortgage rates have homeowners staying put

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EPISODE #771
High mortgage rates have homeowners staying put

[Housing Wire] “Elevated mortgage rates are continuing to give homeowners a reason to stay at their current homes, according to the 2023 Borrower Insights Survey conducted by ICE Mortgage Technology…”

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SVB’s collapse and U.S. Treasury volatility

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EPISODE #766
U.S. Treasuries yields fall in wake of bank collapse

What’s going on with U.S. Treasuries and the 10-year CMT?

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HECM Proceeds will Drop Because of this

Defying Gravity- It’s not falling home prices that will reduce reverse mortgage eligibility

To see how first-world economies may react to the pandemic’s repercussions we may need to look no further back than the 1970s stagflation- That is an economy with increasing inflation and a stagnant economic output or GDP. Think of it as a recession coupled with the increasing cost of goods and services.— That is an excerpt from my comments from August 10th, 2020 on this show. Unfortunately, stagflation appears not to be such a far-fetched possibility. Let’s examine our current economic state of affairs and the potential impact on the eligibility of older homeowners to qualify for a reverse mortgage. 

First, there’s no denying that supply chain interruptions and shipping costs have contributed to the increasing cost of goods and services, but there’s something much more significant the media is not telling you. 40% of US dollars in circulation were printed since the Covid-19 pandemic began.

Is there any chance that too many dollars chasing goods and services are driving record inflation? The Federal Reserve Chairman thinks not. Fed Chair Jerome Powell dismissed money printing as the source of surging inflation and instead points to an imbalance of supply versus pent-up demand as the economy reopens up in the wake of the pandemic. Powell believes financial innovations- whatever those are, mean that there’s is no longer a link between massive money-printing and inflation. Perhaps there’s ‘nothing to see here’ as some say. 

While this massive injection of money has benefited Wall Street and hedge funds, it is average Americans who will be stuck paying the bill. 

So in these uncertain economic times what stands to reduce the future eligibility of older homeowners to get a reverse mortgage?

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