The Covid-19 pandemic caused chaos in the U.S. housing market, with prices skyrocketing, inventories dwindling and intense bidding wars.
Then came record inflation, which drove the price of everything higher.
The U.S. Federal Reserve, though, is waging an intense fight against rising prices, using interest rates as its primary weapon.
A side effect of raising interest rates, though, is higher mortgage rates.
What’s more, the Fed now owns $2.7 trillion of mortgage bonds, part of its plan to prop up the financial system when Covid first started. And it began selling them in June.
So what does the Fed’s fight against inflation mean for the red-hot housing market? Watch the video above to find out more about how the Fed’s interest rate tools affect the housing market, and how the Fed plans to unload the trillions of dollars worth of mortgage debt on its balance sheet.
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How The Fed’s High-Stakes Inflation Fight Hit The Hot Housing Market
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Thank you for quality programming.< What you are describing here is accurate – the flight to safety to the US stock market and dollar. This is what is keeping the market going at this time and preventing a crash. This "melt UP" phase will go on for a while, then as the global economy crashes so will US markets only harder due to the "No Win scenario" that has been created by so much obscene debt. Next comes the "Default Phase" with mega-massive bankruptcies and lastly "Asset Seizures" where banks and the Fed government will simply declare an extreme national emergency to justify the crisis and debit your account directly. The fools will think that this could never happen. The actual legislation for this type of action is already in place. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 523k from day trading with Shirley Bagshaw in few weeks, this is one of the best medium to backup your assets incase it goes bearish..
Big wrong
Increase interest never stop inflation..
Gas , foods , everything up to the sky ..
I was f*** over so many times I can talk and clown like a paint in clown I can even ask her f**** money in clown
Year 2022 has not been good for the general market as it is filled with so much uncertainty. I’m close to 40 with a good 20-25 years to retirement so I’ll stay invested in crypto mining for a while even when the markets dip 2-3% per day I still make income with the help of Sir Bobby Harris. I’m going to use the opportunity to add more investments at cheaper prices. Good investing all!
https://www.youtube.com/watch?v=9k-r8D3GtYw&ab_channel=TheEpochTimes
The private FEDS for the first time in their private history have bought up vast amounts of mortgages. They are all set to crash the housing market AGAIN as they are going to create high interest rates making buyers not on fixed rates have to pay more than they are able to do.
This is part of the pattern of robbing the Middle Class which happened during the deliberate Savings & Loans debacle of the late 80's under Bush the First and in the Bush the Second era financial crisis starting in 2006 where the banks were bailed out and the homeowners put out.
Our corporations run the government for their own selfish ends and it appears that one of their goals as Aaron Russo said he was told by one of the Rockefellers is to make the vast majority of US citizens near penniless serfs. https://www.youtube.com/watch?v=N3NA17CCboA
Maybe we should not follow the direction of the 'experts' and political parties who lead us into this financial crisis? Maybe the legislature should control the purse instead of an obscure closed door delegated government agency?
Overleveraged investors who go bust must be sent to labor camp to work off their debt! Break rocks for life!! Maybe more usefully, use their bodies for medical experimentation. That is what they deserve for making dignified housing unaffordable for millions.
The Democratic Socialist Party is doing such a great job lol
What's wrong with your graphics department? The extra cut scenes are just confusing and not helpful at all
End the fed
I call it "Economic Violence"
Prosperity under Trump. Poverty under Biden.
Great
We’re all screwed
Why do news outlets report on falling home prices as a bad thing? They did this same reporting in 2007 as housing collapsed then flipped around and reported how everyone overplayed for their homes.
So punish the buyers, instead of regulating the sellers? Sounds like American capitalism. Sheesh
The thing that all of these experts fail to take into account is that the politicians will never act fiscally responsible and they will continue to encourage the FED to print money thereby worsening inflation.
Lets go brandon
Don’t you mean private equity has destroyed the market by buying billions in real estate?
HILARIOUS from CanadA: VIDEO is followed and interrupted by an idiot in Canada "pushing" buying houses in the USA. right. We've owned our estate since 1963 in LA. You dont' have a CLUE what you're doing. And these beer can sounding economist advice USA miss the point: the WORLD is now interest rate sensitive. It's not "all about the usa" any more. My 1970 Economics degree has been obsolete for decades, ALONG WITH any idea of the definition of today's "inflation". Live with less, enjoy it more.
6:38 "When people buy homes, they go out and spend the money elsewhere in the economy and when housing starts to slow, some of that spending starts to slow." I feel like she skipped a few steps (words) in the script… That really doesn't make any sense…
After all that money you gave out ,it caused increased instability. This honestly looks intentional. Give all that unemployment to side gig, in which 1000s of homeless got about $17000 each. Not bothering to check sources. Then you gave increased u employment every week when many were getting ERA housing paid for for 15 months. Then you sent tons of stimulus even when everyone was still getting UI. of course everyone is going to be buying and purchasing. Which created an image that it was a flourishing economy. Which was the whole plan. That way the rich would buy shares and stock in the areas that people were purchasing. This was planned! It is the Governments responsibility now to make sure that all have our fundamental rights fulfilled. You wanted us to depend on the system ,but yet gov dropped the ball. We didn't have a recession out of our doing it was created intentionally by the gov. It make the US LOOK WEAK!
If you want to do one thing right this year check fidel peter carthy
TANG PING.🇺🇲 LYING FLAT AMERICA🇺🇲
MAKE THE MINIMUM NEEDED TO SURVIVE. NOTHING MORE. GIVE THEM NO PRODUCTION AND NO EXCITATION DO NOT HELP TECHNICAL ADVANCES IN THE FACE OF STAGNATION CORRUPTION INEQUALITY. GO OUTSIDE LIE FLAT IN PUBLIC LIE FLAT IN THE PARKS DO NOT DO ANYTHING FOR THEM 🇺🇲♥️ TAKE FREEDOM BACK TAKE A LIFE BACK COLLAPSE THE CORPORATE EVIL
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They want us living in our cars, And it's going to happen!
Set the price of money, what's the worst that can happen?
I've been stacking money for a few years specifically waiting for the crash so I can do what rich people do and buy assets at a devalued rate. Last crash I didnt have the money to invest into a house. I watched friends buy houses low and make profit selling them a few years later.
You may not have noticed inflation in years past, But 8%+ inflation over the past year should've taught you that the cost of living on earth increases every year (home prices, rent, groceries, plane tickets, home repairs, etc.) Only way to beat inflation is by investing your money.
Guess those governors shouldn’t have locked down.
World Globalist corrupt elites are to blame. They must be held accountable. Start by NOT accepting their donations which will only OWN you. Then everybody worldwide charge them with crimes against humanity and defund depower deposition them. Easy.
CROOKS! George Carlin was right
Whatever the Fed (Jerome Powell) says, just go opposite, then you'll be fine.
Nice video.
The title should be
China creeples the housing market while U.S policies aides them