This Could Cause 2021 to Repeat Next Year
Many top economists believe the Fed will announce at their Jackson Hole Conference August 26th-28th that they will begin reducing their purchases of mortgage bonds later in the year. This announcement will most likely lead to higher mortgage rates at this time.
What does this mean for us? Don’t’ expect mortgage rates to go any lower over the next 2 to 3 months. Thus, our buyers should NOT wait to buy a home any longer. Plus, it’s the Summer Slow Season.
Longer-term Barry Habib from MBS Highway said this past Friday he believes our country will see a recession or at least recessionary conditions in 6 to 9 months from now. Why? All the stimulus will be gone. Second, our country has added several trillion dollars of new debt in the last 16 months and this debt will slow down our economy. This is what Lacy Hunt has been saying and I shared with you his thoughts just a week or 2 ago.
Barry believes the 10 Year Treasury Bill yield will probably drop to about 1% and possibly lower in 6-9 months. This means mortgage rates < 2.75% most likely just in time for our incredibly busy home buying season which begins in January. Thus, 2022 will probably be a repeat of 2021. Eeks!
Anyone thinking of buying a home in the next 12 months should act RIGHT NOW!!!