The Fed is faced with a delicate balancing act with the mortgage market being so volatile right now. There are recessionary pressures if they don’t bring inflation under control, and if they raise rates too high too fast, it could cause a recession. The possibility of war in Ukraine spurred a rush of buying US bonds, causing the yield to go down. When Russia pulled back and war did not appear as imminent, the bond-buying slowed, and the yield went back up. The mortgage market is based on the 10-year bond, and when there’s a cataclysmic event in the world, people invest in the US bond market because those bonds are considered a safe haven. That drives down mortgage prices. With so much movement, from 10 to 20 basis points daily, it’s a significant shift when so many billions of dollars are involved. The mortgage market then becomes flooded as a result of these negative global events. With these inflationary pressures and the instability in Ukraine currently affecting the bond market, it can be hard to plan for the most affordable time to buy a new home. The best yardstick is the 10-year, which is important to follow to gauge if the mortgage rate is reliable. Jeff’s guests this week:

– Ed Peisner of ofsms.org, the Organization for Social Media Safety, talks about social media and internet safety for families.

– Livier Becerra from Malibu Funding shares advice for buying a house in today’s market.