This week on the Knowledge Brokers Podcast, KCM Chief Economist George Ratiu joins Byron Lazine, Tom Toole, and Lisa Chinatti for an episode packed to the brim with insights on the housing market, starting with current inventory levels and the likely effect of a recession (if one is indeed coming). 

Next, they moved to possible solutions to help with inflation, how interest rates affect inventory, and how to navigate through the math for consumers. 

From there, they discussed how to explain the gap between the federal funds rate and the mortgage rate, what George expects the Fed to do at their next FOMC meeting (and why), and whether the Fed should take a break and let the market play itself out. 

In the final 20 minutes, they covered three reasons why consumers are NOT overspending, how to get more new homes that are affordable onto the market, and how to deal with old-school, restrictive zoning regulations. 

You’ll want to watch this episode more than once to get all the value from it. 

Click on any of the timestamps below to watch: 

00:00–01:50 Intro

01:50 Inventory is flat

06:21 Is recession coming? And if so, what will that do to inventory?

09:39 Wouldn’t reducing the amount we/our government spends help with inflation?

13:30 Interest rates and inventory

15:50 How to navigate through the math for consumers?

17:36 83% of homes have a mortgage rate at or below 5%; 42% own their home outright

21:26 How do you recommend explaining the gap between the federal funds rate and mortgage rates?

27:24 Is 2% a realistic goal for inflation?

29:51 There are some saying we’re already in the 3% range (inflation). Do you agree?

32:13 By definition, is housing still in recession, or have we come out of it?

34:46 What do you think the Fed will do at the next FOMC meeting?

39:48 Should the Fed take a break and let the market play itself out?

43:00 Three reasons consumers are NOT overpaying on homes

48:49 How can we get more new homes that are affordable onto the market?

55:23 How do you deal with old-school zoning regulations?

Click on any of the timestamps below to watch: 

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