Interest rate cuts could 'dramatically increase' home prices

Housing starts and building permits data for May came in below expectations as mortgage rates continue to remain high. Pulte Capital CEO Bill Pulte and S&P Global Ratings Homebuilders Director Maurice Austin join Morning Brief to discuss the state of the housing market and its relationship to rate pressures.
"I think it's a little bit of a speed bump. The housing market is very strong. It continues to be very strong," Pulte explains. He notes that big home builders - such as PulteGroup (PHM), which his family originally founded - are in a good position as they "have a balance sheet, have access to the mortgage bond market and, frankly, are taking market share right now."
As the market awaits an interest rate cut from the Federal Reserve, Pulte adds that a cut will "dramatically increase" the price of homes. With more people being able to afford mortgages, demand could skyrocket, creating an affordability issue. Austin adds, "What we've seen is the level of sales incentives remain elevated, and they will continue to be so as long as rates stay higher for longer, which ultimately could lead to negative profitability on the homebuilder side."
#youtube #interestrates #stocks
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Пікірлер: 56

  • @Aarrenrhonda3
    @Aarrenrhonda3Ай бұрын

    In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?

  • @Peterl4290

    @Peterl4290

    Ай бұрын

    The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.

  • @larrypaul-cw9nk

    @larrypaul-cw9nk

    Ай бұрын

    I agree. Based on personal experience working with an investment advlsor, I currently have $985k in a well-diversified portfollo that has experienced exponential growth. It's not only about having money to invest in st0cks, but you also need to be knowledgeable.

  • @sabastinenoah

    @sabastinenoah

    Ай бұрын

    How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

  • @sabastinenoah

    @sabastinenoah

    Ай бұрын

    I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.

  • @LexisWilson436
    @LexisWilson436Ай бұрын

    The market is echoing the 2015-16 scenario, poised to reach new heights, but may experience a sideways trend until fed signals rate cut. I recently sold 25% of my portfolio, comprising struggling stocks recommended by certain financial KZreadrs, which unfortunately took a significant hit.

  • @Garypryde787

    @Garypryde787

    Ай бұрын

    not their fault, the stock market seems to be more of a casino for gamblers now than a place for investors. even if you were averaging down on ailing companies, its your duty to properly research, buying the dip does not guarantee a rebound

  • @AngieLayman27

    @AngieLayman27

    Ай бұрын

    Such uncertainty is the reason I don't base my conviction on rumors or a ''hearsay'' I have my day-to-day investing decisions being guided by an invt-advisor, seeing that their skillset is built around long and short term, both employing profit-oriented strategies and providing hedge against inevitable downtrends, coupled with exclusive analysis, it's near-impossible to not outperform. I've realized over $600k from $235k capital, since late 2019 just before the pandemic to date.

  • @LexisWilson436

    @LexisWilson436

    Ай бұрын

    Your advisor must be really good, how I can get in touch with them as my porfolio isnt doing well.

  • @AngieLayman27

    @AngieLayman27

    Ай бұрын

    There are many advisors to choose from. But I work with Jennifer Alaine and we've been working together for years and she's fantastic. You could check her if she meets your requirements. Just research the name. You’d find necessary details to work with

  • @LexisWilson436

    @LexisWilson436

    Ай бұрын

    i appreciate this share .I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me. her certifications and credentials are impressive

  • @kortni_animations
    @kortni_animationsАй бұрын

    I couldnt afford it anyway. Jack it up 10x for all i care.

  • @reginafefifofina

    @reginafefifofina

    Ай бұрын

    That’s why you can’t-

  • @jeraldb2868
    @jeraldb2868Ай бұрын

    Thank God I finally bit the bullet as a first time home buyer in 2021. Now there is no way I’m giving up my sub 3% rate anytime soon. When it hits perhaps under 6%, would I consider a move. The amount of appreciation over the last couple of years is enough to offset the higher rates.

  • @reginafefifofina
    @reginafefifofinaАй бұрын

    0:16 too bad there isn’t any government legislation regarding corporations owning individual private homes… or limiting the amount of multi-family dwellings that in conjunction with short term rentals like Airbnb create a rent/mortgage value bubble for working class/retirees/young people:college students.

  • @sandro3796

    @sandro3796

    Ай бұрын

    There definitely should be havent read an argument why there shouldnt be

  • @bobbyward2440

    @bobbyward2440

    Ай бұрын

    ​@sandro3796 1. Because it's not as big of a problem as many would make it seem. 2. Old people vote and are a very large percentage of homeowners and half of millennial already bought..the younger millennial and genz don't vote so they are not a priority

  • @reginafefifofina

    @reginafefifofina

    Ай бұрын

    @@bobbyward2440 where did you get your information from… your narrative?

  • @bobbyward2440

    @bobbyward2440

    Ай бұрын

    @reginafefifofina because we have data on how many homes were being built each year, so this was always going to be a problem..doubling the money supply in 2020-21 only made the problem worse and quicker.. What narrative would I be running on? What would the goal of my comment be? It seems more likely that you are interested in buying a home and you need a scapegoat why you cant

  • @joesmith3590

    @joesmith3590

    Ай бұрын

    That would lead to less building. lol.

  • @beautyborgohain456
    @beautyborgohain456Ай бұрын

    Noticed some influencers hyping cyberopolis up.

  • @terrie001
    @terrie001Ай бұрын

    So contradicting lol. First ppl say rate too high tobuy house. Now with cut, they saying price will increase. So either rate cut or not, still can’t buy house. Lol. So only solution is build way more houses than demand to increase supply. But costly materials will also keep price high regardless. Don’t think house will ever get any cheaper in this decade at the rate of this argument now.

  • @RiteshBalmiki-kp7fd
    @RiteshBalmiki-kp7fdАй бұрын

    Cyberopolis definitely caught wind of the buzz in a couple of forums.

  • @ryanwalters6184
    @ryanwalters6184Ай бұрын

    Google is failing an AI just from the bot spam.

  • @tonylinardi3089
    @tonylinardi3089Ай бұрын

    Rates are low compared to historical standards, The issue is prices are astronomically high!

  • @Needglory23

    @Needglory23

    Ай бұрын

    Once they lower rates, home price will increase even more….

  • @eile4219

    @eile4219

    3 күн бұрын

    That's why they need to increase the rate even more, not lower the rate

  • @nickvin7447
    @nickvin7447Ай бұрын

    No mo mo's it actually has an opposite effect. More supply, prices go lower. The end.

  • @paulkelly4731
    @paulkelly473120 күн бұрын

    For mostly political reasons, the Fed will cut interest rates in September..... the stock market will soar, and home prices will soar.... but increases in house prices are not calcuted in the CPI inflation number.

  • @ret4kind
    @ret4kindАй бұрын

    Seems like a scam. Homes worth 250k that were once 50k. A 1950s crap house sells for 5x the price isn't worth 25k.

  • @walkingjustice3703

    @walkingjustice3703

    15 күн бұрын

    @ret4kind I have always questioned the same way too, a 1903 useless structure selling for 300k. A structure that has badly weathered. Insane to think about that

  • @ret4kind

    @ret4kind

    14 күн бұрын

    @@walkingjustice3703 I did the math last weekend. That same house worth 280k is going to appreciate to a billion dollars in 20 years. So a 1950s crap house will be worth a billion dollars. A worthy investment.

  • @ret4kind

    @ret4kind

    14 күн бұрын

    Also, a McDonald's McDouble is going to cost $7300.00 in 20 years.

  • @ebutuoy5088
    @ebutuoy5088Ай бұрын

    Good

  • @DeepakSingh-ti8vm
    @DeepakSingh-ti8vmАй бұрын

    Saw the cyberopolis hype train leaving the station in a few chats.

  • @kpgamer-ym9uu
    @kpgamer-ym9uuАй бұрын

    Noticed cyberopolis popping up in conversations on Discord.

  • @toddgammons9400
    @toddgammons9400Ай бұрын

    Rates aren’t the problem it’s the prices

  • @NWO_Media

    @NWO_Media

    Ай бұрын

    No it’s the Biden administration and all the money printing they did for Covid and shutting down the economy. Biden printed more money in 1 year than all the president combined. The country is over man. Soon they’ll announce their stupid digital currency “cbdc” to fix “inflation” to “save you” it’s all planned read “the great reset”

  • @jinshasijo956
    @jinshasijo956Ай бұрын

    Decided to jump in on cyberopolis with a small position myself!

  • @Prajwal.pPrajwal.p-qs3jm
    @Prajwal.pPrajwal.p-qs3jmАй бұрын

    Cyberopolis's team is comprised of industry veterans. Their experience speaks volumes about the project's potential.

  • @guruprasadnishad6057
    @guruprasadnishad6057Ай бұрын

    Seems like cyberopolis gaining traction with the big names.

  • @satrughnsah5821
    @satrughnsah5821Ай бұрын

    Couldn't resist and grabbed a slice of cyberopolis. Let's see where this goes!

  • @RamashankarJana
    @RamashankarJanaАй бұрын

    Saw some heavy hitters backing cyberopolis up, so I snagged a piece of the action. Fingers crossed 🤞.

  • @sjimenez187
    @sjimenez187Ай бұрын

    Screw turtles and birds, we need more homes

  • @SigFigNewton

    @SigFigNewton

    Ай бұрын

    Fewer homes = more small business closures

  • @user-cv9cd4sq2n
    @user-cv9cd4sq2nАй бұрын

    😂😂😂😂😂

  • @Goodiebar18
    @Goodiebar18Ай бұрын

    Who’s paying $500K+ for a 2bdr shithole ranch home on less then an acre of land? Lmao

  • @ryanwalters6184

    @ryanwalters6184

    Ай бұрын

    Most people

  • @chrischoir3594

    @chrischoir3594

    Ай бұрын

    in New England they pay 600 -700k for that

  • @user-xt6it6fj1x
    @user-xt6it6fj1xАй бұрын

    Just when I thought I'd seen it all, Cyberopolis comes along. This project is on another level.