Susan Wachter

We were hoping as inflation decreased, as 10-year interest rates decreased, mortgage rates would get back to a normal range, 5%.

We were hoping as inflation decreased, as 10-year interest rates decreased, mortgage rates would get back to a normal range, 5%.

Mortgage applications for purchasing new homes, that will decline.

Mortgage applications for purchasing new homes, that will decline.

This will be a Donnybrook for the refi market.

This will be a Donnybrook for the refi market.

A key price for the inflation rate is oil.

If oil markets are destabilized as they are right now, and if oil prices, their significant increase continues to

This is clearly going to raise the inflation rate.

Okay, I am Susan Wachter, and I am a professor of real estate and finance at the Wharton School of the University of Pennsylvania.

James is going to go to a bank and say, I want a mortgage.

The bank will then sell that mortgage as part of a pool of thousands of James' mortgages.

And that will get funded by investors.

who will bring money to the game, they are the ones who are ultimately lending to James.

Lower, to some extent, the mortgage rate that James pays for.

going forward, that James and his friends.

This is huge.

Yeah.

Well, it's huge, except it's not huge.

It's not a huge decrease in rates.