Mortgage interest rates have been volatile, recently spiking to around 7.8% for a 30-year fixed mortgage. However, there is hope that rates could stabilize or even decrease in the coming months. One factor contributing to this volatility in rates is the Federal Reserve’s raising or lowering rates to control inflation. Additionally, there is the recurring issue of economic data revisions that often contradict initial reports, calling into question the reliability of the figures used to guide policy decisions like interest rate adjustments by the Federal Reserve. If the underlying data is flawed or subject to substantial revisions, how can policymakers and consumers make informed decisions? This uncertainty adds to the challenges faced across the mortgage and housing sectors. How do the actions of the Fed and other mitigating factors affect prospective homebuyers? Will they be incentivized to purchase now before rates potentially rise further?

The housing market is facing a significant supply shortage, with only 37% of people currently able to afford a mortgage. Zoning restrictions, NIMBY opposition to new development, and a lack of new construction by builders are the main obstacles to increasing housing supply. Potential solutions like accessory dwelling units often face pushback from local communities. Are there other ways to meet this demand?

Inflation remains stubbornly high, driven in part by the rising costs of housing and rental markets, which account for 75% of the recent increase, with the effects felt across the economy from higher mortgage payments to inflated costs for basic necessities like food and utilities. Price gouging by oil companies despite low production costs, drug companies exponentially raising prices on life-saving medications, and large corporations like Walmart paying low wages that require government subsidies for employees add to the difficulties consumers face in stretching their dollars. Does corporate greed contribute to persistently high inflation levels? What measures could help mitigate the impacts of corporate profit-seeking behavior on consumers? This week, Jeff’s guests include:

– Nina Penny (simplereversemortgage.net), Nina Penny explains different reverse mortgage products, their features, and the overall market for reverse mortgages.

– April Lopez (Nation’s Direct Mortgage) provides insights into current trends, popular loan programs, and the challenges of high homeowner’s insurance costs.