Mar 24, 2014|
Automatically Generated Transcript (may not be 100% accurate)
-- passenger is with us this morning CBS news senior business analyst host of Jill on money. Saturday's report until six and WB and morning Joseph good morning to get caught up in March Madness. You know. Worst person in the world because -- against teams that don't like. It for something like that must do. So anyway. So your team. I I don't get in -- -- you don't get you did not do. That we after two weeks there's just enough people here now intimately. There. Things like that Federal Reserve had as much room at my brain anymore so that use my available sells concentrate and Jan Allen and that's my excuse what's yours all. Guys and our sports department would you sure they'll fell asleep just. I know exactly exactly. You know speaking into -- Alan. What -- what will be the eight words that she uttered that jolted the markets well initially asked me how long after the Fed stops buying bonds to stimulate the economy how long after that the -- think about recent short term -- hugely important right it's the out of money get -- your checking. -- -- it determined short term borrowing rates. And she says. Really off and it like us on the order around six months like an LLC six -- oh my god markets sold off huge on that remark because all of a sudden people said. BP rate technical up so that we expected next year and made everyone racy. It was exactly one day he wore off by the following day traders came back -- that well it's that much. Well you know right now though it is really a good time to -- somehow especially around here on the buffalo Western New York area. And with interest rates rising this might a little bug on the issues. Light and mean but remember short term interest rates are not what determines your mortgages and rates have gone up by. Full percentage point since last spring selling season that's important right because. That has actually slowed activity picked it began coming into this year. Now and so of course as the weather. That you're actually right I mean there is this sense that the housing market has really come a long way from the bottom it's somewhere price wise. And it ended in your neighborhood. It somewhere between where we were bought and that peak level so. All all things are going well for the housing market but we really need to see is that mortgage rates state reasonably low and they are 4% for a thirty year fixed rate mortgage is pretty low. And that new home buyers into the market after investors in other words you're 32 year old kids who were going out and ready to buy a house we need more boos people coming into the market. And buying homes of course they're strapped down with student loan debt back coming back in so fast. Jill are. A mortgage interest rates about the same across the country in other words for the forty year mortgage with a -- the same and California as it would be here in -- It varies but generally speaking it's four and a half percent for a thirty year fixed rate mortgage right again -- generally speaking there's so weird quirk that's going on right now on the mortgage market. Did you -- -- for when you borrow more than 4171000. Dollars the rate on those slightly lower. Then for conventional well that's very rare and it's because lenders want people who they believe. Are the best credit risk it's tough to get a mortgage credits itself so. -- get is a lot of factors weighing on the housing market the biggest of course being that we had a huge boom and bust. This second biggest factor being -- lot of people are still -- out after the recession we gotta get borders people on their feet getting jobs get -- and getting back into the housing market. Speaking of that digging out you know a late spring. Which it looks like world -- again does this hold back the economy OS. It in the first quarter growth rate is going to be kinda stinky for this year where we're probably at 82%. Growth and and maybe even below that. The good news is that went to -- related issue. Then we often will see me something. That springs back Haiti's spring weekend. In the second quarter because you've got demand that's building up so that's actually not a terrible thing it just may be a slow start to the. OK still have a good week take care that's still solicitor CBS news senior business analysts.