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Big John Talks! Market Volatility

2021 is pushing right along! Let's keep things in perspective - rates have gone all the way up to the low 3's! Tune in as Big John discusses rates and the economy.


Video Transcript

Welcome to big john talks Your guide to everything business in Columbia, South Carolina. Good morning Midlands Good morning, Columbia. Good morning, South Carolina. It's big john. Big john talks. hope everyone's doing well. It is March 2021. We are seeing some sunshine outside.


We are hearing some birds chirping a little bit, man. Was it raining a lot in February? I mean, just nuts. Absolutely raining. crazy year so far. Of course, it all kind of feels like you know, how could 2020 be any more crazy. And then 2021 says here holding up here we are. got quite a very interesting 2021 going on so far. But I'm seeing some hope, man, I'm seeing some good things happening. I'm seeing some a little bit more normalcy coming back. I think we still all need to be very careful. What's that thing that I say like most people that have car accidents, it happens within one mile their house because they think they're already home. So they get a little bit more careless. And then you know, that's when they have an accident. So I think we have to kind of take the same a bit of approach a little bit and start enjoying the sunshine, start enjoying a cold beer starting enjoying some friends around a table and supporting our local businesses. But being a little bit careful to mean we're getting there. We're getting there. I'm optimistic. It's a common, it's a common. But, you know, today, I just want to talk a little bit about the market volatility that we've been seeing in the mortgage business, it has been a little bit crazy. This is March. So if you're listening to this podcast in April, or may, hopefully things have settled down by then. But you know, in all the years of my industry, I've never seen markets or the rates or the mortgage backed securities change pricing so quick and so fast. And I think it's just a sign of, you know, strong economic recovery, which is good, you know, good for the country, good for people. And in general in and, and still good for the mortgage business. I kind of wanted to just kind of keep things in perspective. Talking to a lot of folks. The common trend is, you know, oh my gosh, rates have gone up? Well, they did, we saw a movement and rates. And I'm gonna speak a little bit of a mortgage jargon, but it's, you know, you see something called a 200 300 pips weighing in a matter of three or four weeks, and then you get a 50 bit price improvement on one day, and then you go right back to a 40. decrease in the next day and or hit and and you're kind of like, where are we going to land? Or are we ever going to land or is every day different than the day before. And so, anyway, I just wanted to send this little podcast out is is kind of keeping things in perspective, market volatility, sure, we are seeing rates increase a little bit go a little bit higher. And I kind of make the joke, they've gone all the way up to the low threes. It's kind of funny when you actually say it, we've gone all the way up to the low threes. Look, rates have to stay down. And the housing market is the one thing that's kind of keeping the economy driving right now, while we get through this mess, and rates do need to stay. Now we do need low interest rates to kind of help people get off the fence on selling their homes. For goodness sakes, we got new inventory, that's a big problem that we're facing right now. And builders are having a really hard time keeping up with the lumber prices and other materials that they have. So that's a big problem that we have right now. And I'm going to touch affordable housing on the next podcast. But you know, rates have to stay down, there's really no point for a mortgage rate to go up at this point in time. We don't forecast it to go up, they've gone up a little bit. We saw a change in the pricing, but we're still in the low three. So historically, for the last 100 years of getting a mortgage, we're still the lowest we've ever been. So little bit of perspective on interest rates interest rates do mean a lot but you are able to afford way more house than you ever have been before because your rate is in the threes not in the fives or the sixes and you are setting yourself up for success for the future just attaining a low interest rate. It does sound nice when you say to something to point this to point that but I mean it sounds really nice when you say three point something as well. You know rates are only part of the part of the discussion when you're buying a home. You know there's other things to take a factor in with your payment such as mortgage insurance or property insurance, your hazard insurance your home Insurance, I mean, that can that can be a 30 or $40 swing in your payment as well. And that really comes down to making sure you're right with the right insurance carrier. And that's a big, that's a big decision as well. What county Do you buy in? That's another big decision as far as what your payment is going to be and how much you pay over the life of the loan? How much did you pay the county in taxes? That's another discussion that seems to be going on right now, some counties are more favorable than other counties.


You know, this podcast was really just to kind of touch on interest rates a little bit March. It has been an interesting month, March has been one of those months where we're starting to see some light at the end of the tunnel. And I think what you're gonna see is you're gonna see a change in interest rates a little bit. And I think we should all be prepared for that. But this should not stop us from doing what we want to do, which is attain homeownership, which is the American dream, you're still going to get an amazing interest rate for a long, long time. So that's my two cents on interest rates right now, hopefully, it stays the same, and a couple of months. And this is a conversation where I can look back on and listen to my own podcasts and say, Hey, remember the time when we went from the twos to the low threes, and everybody freaked out? No reason to freak out, folks. Things are going great. We're going in the right direction, and really looking forward to an amazing spring market and amazing summer market. And I'm actually even more looking forward to an amazing time in Columbia, South Carolina and Lou golf where I live and in and hopefully the world will, we'll start to see see some normalcy again, we can start seeing our friends and family on a more regular basis. And, gosh, maybe go see the Billy strings concert Columbia Motor Speedway, and in a few weeks, I'm really looking forward to that as well. So you guys, have a great weekend, and join me on the next episode. Thanks for listening to big john talks. Check out more episodes at bigjohntalks.com



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