Why do mortgage rates need to cool down?

HousingWire Lead Analyst Logan Mohtashami joins the HousingWire Daily podcast to talk about why low mortgage rates need to end. During the interview, HW+ Managing Editor Brena Nath interviews Mohtashami on his most recent article, “We need higher mortgage rates to cool the housing market.”

In his opinion piece, Mohtashami states, “For 2021, we need to root for a repeat of what happened in 2013-2014 and 2018-2019. Home prices have caught up to per capita income, just like what we saw in 2002. However, mortgage rates are lower today, and demographics better. I feared this could be the case and it’s part of why I wrote the Chaos Theory for HousingWire back on Feb 3, 2020. I wrote that if COVID-19 hit us, stocks, the economy, and bond yields would fall, and this means mortgage rates would go down with it.”

Listen to the full episode here or below and make sure to subscribe to the podcast on iTunes.

Below is the transcription of the interview. These transcriptions, powered by Speechpad, have been lightly edited and may contain small errors from reproduction:

The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

The post Why do mortgage rates need to cool down? appeared first on HousingWire.