The extraordinary wealth created by the pandemic housing market. So what you need to know the tl dr for this is basically over the past two years. Real estate has gone crazy americans who own their homes, have gained more than six trillion with the t in the past. Two years, so, if you're a person who's like give me a graph, i want the quantitative side of things.

Well, it's bottom left to top right type of stuff which brings up the question. Okay, like is this a bubble? Should i be buying a home like? What's going on, what's the same of 2008, what's different? Well, this all comes into play today, if you're watching this in real time the fed remember whenever it comes to homes, you have to talk about mortgage rates, and mortgage rates in a trickle-down way are going to be impacted by the fed fund rate, because that rate, Which will be decided today, they're most likely going to be increasing. It is about how much big banks are going to end up charging big banks to be loaning money like overnight, that ends up trickling down in the whole idea of interest. As this comes down, it will have an impact as potentially you, a homeowner or maybe you looking to get into the world of real estate 35 rise in home prices over the past two years, that's relating to the six trilli pop.

So if you're a homeowner, congratulations to you, your tax is probably pretty rough, but your net worth going sky high. So seriously, congratulations so buyers of a typical existing home, which went for 375 000 in march, will pay 440 more each month than they would have in december. So this is coming back to the fed. Remember those 10-year yields of one that's commonly tracked.

Also, the two-year yields as you're looking at the yields, yields are going up and up and up which means interest, is going to be going up and up and up and that all kind of ties together with the fed raising rates. So it looks like the average person could be paying 440 more dollars. The housing market is definitely out of whack. According to the fed governor christopher waller, we see how the interest rates start cooling things off going forward.

So right now, if you look at this home buyers facing sharp higher costs from raising rates, so obviously raising rates is going up and the question is: is that going to cool off the market or is something else going on in the housing market, but an unprecedented Collection of factors, including record low housing stock, unusually high household savings, an extremely tight market, increased worker mobility in creating cross currents that could blow the forecast off course. So this is actually why it's a bit different than 2008. And yes, of course, we have some graphs. The soaring cost of home loans, so home loans are going up and that's the question: is this spike in home loans going to calm things down in the real estate market, but, as we saw in those there's a list of other things that i would say make It different of maybe not a near record load of homes for sale, so literally just the supply is low.

So if supply keeps going down and demand stays the same or increases prices could keep going up and then on top of it, when you're looking at like and we'll explain it a little bit more. So we have an extremely tight job market. So that's going to be another thing that says: uh real estate might be like staying alive, might not be the bubble that we've recently seen and then also this one unusually high household savings. Numerically, a lot of these families have money stored up.

So there's a couple things that tell me and remember: definitely not a real estate market expert i'll bring someone on to like give it a little bit more substance here. But i think what we're seeing is a little bit different and then, when i was talking to people who are friends of mine that are actually like the supply is so extremely low. That will raising interest rates cool things off yes, but they think it's only going to be to a minuscule amount.