Homeowners with a 2.5% to 3% mortgage are 'trapped' which is hurting supply, says GTIS' Tom Shapiro 

Well that's the issue. Chasing a mortgage payment inflated asset prices. It distorted what people could buy. I'm not saying you over bought or overbid, but a ton of people did. If you refinanced on a home bought before 2021? Yall absolutely made out like bandits.

You’re not enjoying lower mortgage payment. You’re enjoying lower interest rates with higher inflated prices that you can not refinance any lower in the future. “Date the interest rate, marry the home price”

I don’t know who thought it was a good idea to bring mortgage rates up to 6%. And the fed is raising it even more. I wouldn’t buy a house now even if prices went down by 50%.

@baldeagle4710 That's absurd and short sighted. If the price falls low enough at a higher rate, then you're better off in the long run since you're going to get better appreciation. If you bough at the top of the price curve, because lower rates made you afford it? You'll lose appreciation in a correction at a 50% drop. Why wouldn't you buy the cheaper priced asset? This is why rates should never be 2% because it distorts people's idea of what nominal rates should be.

💯

Speaking the truth there.

Same here. 2.75% on our 30 year VA mortgage.

Same. I'm at 3% purchased in 2019. I'm happy.

I downsized. Sold my big home and bought a smaller one for cash and now live off the profits.

Same here re: great-great rate on my house. We're not leaving 'til we're heaving !

2.25 here. I am staying put because Im not stupid

3 here

@@danettewelborn5577 , same here

😄😄😄

Oh no poor you. I don’t have it as bad as you I’m stuck at 2.999%

People will hesitate greatly

yup, haters gonna hate.

Because you have no desire to move. Others must move for a myriad of reasons.

that's awesome -- as someone who didn't buy when rates were low I can tell you I'm envious :) -- but happy for people like you who found a house you like at such an amazing rate.

@@mrwilliamwonder Right, but even if he was forced to move, he's still not trapped. Let's say he bought a home back in 2011 for $475K. Let's also say he's been working from home, his job is located in another city (my situation), but they are now insisting that you've gotta come into the office four days a week. Ok, great, he goes to sell and he gets $745K for his home, pays off the $475K (he wouldn't have hit the principal at this point) and takes the $270K and buys into this high interest rate market. But again, he's got $270K to lower that mortgage. To make things even better, if I were in that situation, I'd get an adjustable rate mortgage, which have lower interest rates and would refinance with rates come down. Sure, ideally you'd prefer to just stay where you are, but in this situation, you're far from trapped if you have to move.

Equity?!? How long that’s the conversation about

@@geeked-outbasketball765 Wow! I think you are the first nice comment I have ever seen on youtube. Thank you!

Now that’s what I’m talking about! My wife and I bought our forever home 5 years ago, and 2 years ago we refinanced it down to 2.45, and bought 2 rentals and have those at 3.25! Smart, have someone else build your equity for you! That’s how wealth is created!

@@dmkfactor1721 the wannabe landlords think they're better than anyone else. that's also how you destroy a whole generation. rents and home prices are coming down very soon. prepare if you bought a overpriced property.

@@gabryy12 🤣🤣🤣🤣 go read Morgan Stanley’s report Zero!

You got lucky, your timing was right. Others can't all be as lucky.

You don’t speak for those that want bigger homes because their family is getting bigger.

Exactly. Media spinning a narrative again. Too bad for them, many people are catching up and being smart nowadays

Can’t buy my first home as a 24year old everything is overpriced and the interest is higher. On top of that there’s barely any houses up for sale near me.

@@gimne More adult children are living with their parents now

Just pay the damn thing off, it's even more liberating. I can testify.

Its always funny when someone intentionally misinterprets the point. Unfortunately- it comes across as stupid and sad as a RU-vid comment.

I feel a bit trapped. We love our home, but we want to purchase the "forever home". I can't help, but think how much cheaper the monthly payment would have been had we purchased sooner. I wasn't expecting mortgage rates to increase that fast.

Mine is 2.00%. With 12.8 left. I’ve been buying 4% CDs with my extra payment. Will pay down my mortgage when the roll over rate drops. (I know it’s not the Ramsey method).

Exactly, I’m at 2.25% here in Southern California. My mortgage payment for a 3200 sq/ft home is now the same as the 700 sq/ft apt we moved out of 5 years ago. I cannot believe people have to shell out $2500 - $3000 to rent a 2 bedroom apartment these days.

Lmao I know right. Way to turn a positive into a negative CNBC.

I'm not complaining with my 2.562%. I'll have it paid off sooner than later.

​@@kidwichitamine is 3.75 .i am keeping mine... imo you snooze you lose

i dont think anyone is buying

@nappytime25 less demand wayyy less inventories in the market. There is still bidding wars in desirable areas smfh

Don’t forget all the people who bought second and third hinges to rent out. Wait until the recession. These owners will have to start selling these investment losers.

You still have not addressed the real issue, and people normally do not. The real issue that caused the shortage was strict regulations after 2008. That was when the inventory shortage began, and no one realized it until it blew up in 2020 and beyond. Unless somewhere north of 5m homes are built, there will be a shortage of supply, which will continue to keep demand high. Sure there are several other factors keeping the housing high, but supply is the main factor.

@@Mico77777Incorrect. If you have 2.5 3.0 interest rate, you give a fair rental rate and still make a nice profit. There will always be renters, more now than ever actually

CA needs to ban private companies from buying single family homes

​@@livingmybestlife365 there are no 2.5 to 3.0 mortgage rates for Investment homes. The interest rate is much higher for nonprimary residences. Often times variable rates. When the low initial rate is up it goes way up to the current rate.

Imagine being trapped in a 2.5% mortgage that will be paid off in 10 years. In a house you love and have tons of equity. Boy it's a living hell.

@@bigmike9433- i guess we will be suffering in silence 😆

- damn I didn’t know they dropped that low ! 😮

Prices will never go down. Huge demand + little supply = high prices

You fail to realize we have under built america

@@thedude5040lol. They’re heading down monthly.

@@billbigshlong382 maybe if you live in a state that allows the homeless to poop in your front yard, but I assure you prices are not going down throught the country

We refinanced at that price. We pay a little over 1k for the mortgage, why tf would we move into a higher priced terrible interest rate new home

Yes!

Credits ARE posted on the MLS which will be listed in the comparables that a good agent will give you to decide on the bid

@@yume816 I understand that but that isn't what I said.

this whole real estate agent business is a scam.

If you’re the builder and trying to sell the community, you want to keep those prices as high as you can until you unload all those homes..

- this right here! I could sell tomorrow, but there’s no incentive.

Oh poor you. Cry me a river

you sold late, and at this point are impulse buying paying 700 dollars higher for your decision.

Don't depend your market assessments and decisions on hearsay and rumors; I did it in 2020 and ended up with worthless market holdings. Before I started noticing any notable improvements in my portfolio, and I had to completely rebuild it. I've been using the same advisor ever then, and in just two years I've scaled up to $876k. Depending on where you look, a bullish or down market might both produce good profits.

@@carssimplified2195 Thats a good one. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?

@@Justinmeyer1000 My Financial adviser is ‘’Christine Jane Mclean’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

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Hard to make broad statements about real estate now. Our metro area on the east coast has a huge supply shortage style. No measurable decline in property houses here.

You need to hire a financial advisor to help you diversify your portfolio by including Mutual Funds, Etf's, the 11 GICS groups, inflation-indexed bonds, and stocks of companies with reliable cash flows rather than growth stocks, where prices were based on future prospective earnings.

@@chloeanderson543 That's correct. At first, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of £550k, which is about 10 times more than I average on.

@@kalfmanbrown5953 My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor

@@darrenphilip247 Having a counselor is essential for portfolio diversification. My advisor is "Trade with Ethan Grayson" who is easily searchable and has extensive knowledge of the financial markets.

@@kalfmanbrown5953 Thanks for this tip. His handle and website popped up on the first page immediately I searched Ethan’s name, I read through his resume and it seems pretty tight. So, I dropped a message & hopefully he replies soon.

Same for me.....

Yes, trapped because why would anybody sell when they have a 2.5% interest rate and buy into a 6% interest rate losing considerable buying power? Also you need to learn the difference between their and there, basic english. Lol

Not if you pay cash

Interesting perspective, as I am locked in 2.25 courtesy of disabled veterans refi. I also purchased prior to covid. My main concern is the coming rental frenzy as a option. As well as, whole cash buyers. This will surely inflate prices. Many fortunate homes will mortgage free by 2025. That's when the straw will break the camels back.

EXACTLY....I was literally just thinking the same thing...

I totally agree with you. I love America, but I may have to retire out of the US or at least out of California. Although I own a house, everything (utilities, petrol, grocery, etc.) just keeps going up. I am doing my own gardening, because I can't afford a gardener anymore. I am scared to turn on my AC, because the electric bill is soaring, I am taking public transportation because petrol and insurance costs are high... it's a struggle living a middle class lifestyle.

Have you tried a high paying profession? You could do a 12 week coding camp and earn $100k/yr quickly.

And this is the reason why you don't rent in the first place. There are several programs that give out grants to own, or 01% interest rates

@@igotanimac1 Yes, we started out as a young couple with an FHA loan and zero money down.

@@TrendyStone I make lots of money and spend lots of money lol. I like being able to move wherever I like. I live in a very affluent place so my kids have good schools. When they graduate will move to a cheaper locale

Exactly. Everyone with a property at a rate under 3% feels fortunate and was smart/fortunate to take adavantage of those rates. The folks who are trapped/screwed are the buyers. High rates and low supply = bad environment to be buying.

Good luck with your homeowners insurance doubling every year!! Also when your house gets it's new appraisal for property taxes I'm sure you will feel so grateful.

@@kjay5056 you type that like you are just hoping all these things happen to my household. Nevertheless, for now, we are good to go. My wife and I both easily make well over six figures. With that in mind, I hope we will still be fine and still are grateful in comparison to the BS others are having to put up with around us. But yep... Keep hoping and wishing everyone falls down in the same sinking boat all because a few are hanging on in a life boat. What we are anticipate is not inevitable. So, until that bridge gets here, we march on and still remain positive and for now, comfortable.

😂😂 exactly, I'm seeing a bunch of newly purchased homes going up for sale in my area. The appraisal values are estimated to drop. Which is likely to happen. Got an email from a homebuilder recently, who has inventory, showing prices have significantly dropped. Pricing was too high and now that speed bump hit and was left holding the bag. Can't ride in a boat upside down for too long. If you got a low low price and good interest rate, hats off too ya. But an overpriced one....ehhhhhh.

There crying cause there bonuses won’t be as big.

You missed the point. If people can’t or won’t give up their 2.5% loan they won’t upgrade (buy bigger house or build)…which impacts new construction (and free movement), thus total inventory, thus drives up rent payments. High rates impact everyone.

Exactly!! These morons keep saying “upgrade”… “upgrade”… who says you need to upgrade if you made a solid purchase?

Well if you look at consumer debt right now it's skyrocketing. Credit cards alone are more than 1 *trillion* Not everyone is "stable" like you

@@mg-by7uuNot my problem

@@Bonafide188 This entire discussion confuses macro economics with micro economics. You never took Econ 101.

Just wait and see what happens when they drop rates again

@@DanielRicany Yes. demand will go crazy, buying and selling. But first their will be some pain. That will be the catlst of the rates dropping. they dont just drop rates for the fun of it. So there will be a crash while they drop the rates followed by the mother of squeezes in stocks and house prices.

@@DanielRicany Rates aren't coming down significantly anytime soon unless something breaks.

Looks like you won’t ever be buying lol

Keep renting is no fun either.

I dont mind renting. In my area most houses seem like a massive pyramid scheme. You get an over priced home with a high interest rate. Plus on top of it you pay massive property taxes that have doubled in the past 5 years. Dont forget that huge HOA fee each month.

Once interest rates drop, housing prices will skyrocket.

Broker valuation will take apple to apple comparison.. even Zillow had dropped inventories in 2022 due to this trapping concerns. As a free agent you can be more flexible in renting..

We ain’t buying you live in Portland, the cesspool

Just move on if you don't like prices. No one is stopping you. What an idiot

Thank you, home building is still popping off in my area. Builders dropping prices also on current inventory. Plus a mega project in the works for the next up coming 15yrs. There ain't a shortage, it's them not coming back to reality with pricing from the builders and developers.

Maybe in NYC, but not the case elsewhere. Real estate is very local, try to remember that

It is the same for my brother in Utah and my sister in Oregon. Maybe not exactly $1000 but it is hard to justify buying

Renting can be as much as buying in certain markets but not everyone can qualify for a mortgage. However they maybe renting g at the same amount they would be paying for the mortgage that they don't qualify for. Happens all the time. So they are forever renters. They are the ones that are trapped.

I saved up for my house and bought it with cash. Took 15 years of saving and renting. Imagine that, you save for something...then buy it. If you can't afford to rent, then you can't afford to own a house.

When you add in all the costs of owning a home/house (insurance, maintenance, repairs, roof, furnace, mortgage, taxes...), the economics will almost always favor renting over buying. However, people want a "home" and to know that they can choose to live there without the threat of having to move and for life stability, but, you should first rent until you save the coin to comfortably buy. @stevenk195 is spot on.

I don't think I've ever seen two stupider posts on home ownership vs renting in my life. First guy says "if you can't afford to rent, you can't afford to own" (which is probably true, but it doesn't really show much sympathy for people who can't afford to rent--where are they supposed to live)? Second guy says "the economics will almost always favor renting over buying" but seems to forget that the REAL value in owning a home is the fact that your mortgage rate never goes up no matter how long you live there. Try renting a place for 30 years and see how much money you end up shelling out.

​@cozyslor not even close bc if they equal the same which they typically do..I'm getting at least my money back when I go to sell due to appreciation..when you leave your rental all you get is a thank you from the landlord

@@User.9.459 This analysis makes zero sense. First, there's no guarantee your property will appreciate, and doubtful inflation adjusted. If Rent = Mortgage then your home better appreciate equal to or greater than the expected return on your down payment if it were invested. Now add in the money it costs to maintain a home, insure a home, etc...Here's a question for you; If I have a $500K 30 year fixed mortgage @3%, and I have $500K of cash, would you advise me to pay off my mortgage?

With a low inventory that’ll take a decade to be realized!

It'll come. All these layoffs will lead to many foreclosures

@@kidwichita what layoffs? Unemployment is below 4%! This isn’t 2004 when IF you got laud off you had no hope. Now you can turn on an app and join the gig economy!

@@dmkfactor1721 are you serious? What layoffs?

@@kidwichita didn’t 339,000 new jobs open last month? Can’t people go work instacart and drive for uber now? Your stuck in 2004 bud!

@stuckcamping When they loose the house they can sleep in their 75,000 vehicle until the repo truck comes for it.

I still will never get used to seeing 84 and 96 month car loans. So much depreciation and sales tax.

@Dave-zl2ky For that price. It tells me you’re not in a desirable neighborhood. The ghetto.

The country is short over 5m houses. Once that demand is met, then prices will go down. This all started the 2008!housing crash, when the politicians tightened lending regulations. I mean, when you regulate something like this, it is definitely going to have a major impact on prices. Essentially, if you vote democrat, this is what you voted for, so do not whine about high prices.

Depends on what part of the country you’re in

You’re trapped because you bought in the ghetto

Inventory is only low because of investment buyers who bought when there were very easy low interest loans. Too many homes are being rented as vrbo. They used to be private residences. The fed and congress caused this.

You said it! Interest rate was too low for too long. The Feds had good intentions, but were very short-sighted in their thinking . Almost everyone locked in these ridiculously low rates, and now no one would sell, thereby causing extremely low inventory, so prices are not budging. Just terrible. Yep, I support 10% Interest rate.

That won’t fix the supply problem! It’ll only tighten the market even more! Glad we refinanced all our properties a couple years ago!

History of the federal reserve tells us, that higher interest rates, brings down inflation, and breaks the back of housing

No, the politicians created strict lending regulations after 2008, and since then, building never was able to keep up with demand. Let’s stop pointing finger at interest rates, corporate rentals, inflation…. and let’s address the real issue, which is regulations. For decades, liberals were wanting to more like socialist European nations, and with each vote, they get close and closer to Europe, but Europe are very expensive renters nations. People that vote democrat, are people that want more regulations, and they have to know it’s ultimately going to cost a lot more. So, if you vote democrat, don’t even complain, and embrace the high prices, because this was a conscience choice.

@@jesse_- AMEN! 💯

....thank-you 4 ur service 🇺🇸