Smart Mortgage Decisions and Market Impacts | Weekly Business Briefs w/ Martin Perdomo

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Unlock the secrets to smarter mortgage decisions as we explore the complex world of rising interest rates and refinancing. With 30-year fixed mortgage rates at 6.6% and whispers of them sticking around for a while, it's time to think beyond just the numbers. We'll guide you through the benefits of a 15-year mortgage for those keen to pay off loans quicker and save on interest, providing you with insights to make informed and strategic moves in today's housing market.

But that's not all; we're also examining the broader economic landscape, focusing on the Federal Reserve and its response to looming tariffs that threaten to shake up multiple sectors. Discover how potential price hikes on imports could ignite inflation and strain supply chains, and why market futures are feeling the pressure with dips in the Dow, S&P 500, and Nasdaq. Yet amid these challenges, energy stocks are on the rise with climbing oil prices. Join us as we dissect the interplay of these factors and their potential impact on your investment strategies in the weeks to come.

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Episode Transcript

Speaker 1 (00:00):
Welcome back to Wealthy AF Business Brief, where
we break down the latestbusiness economic trends that
impact your investments andentrepreneurship journey.
I'm your host, the leadstrategist, martin Perdomo, and
today we've got three majorheadlines.
Let's dive right in.
First, in the world ofmortgages, mortgage rates

(00:24):
continue to stay elevated as thenational 30-year fixed rates
rise to 6.6%, while the 15-yearfixed rate stands at 5.93%.
Bankers association forecastthat rates may remain high for

(00:44):
the foreseeable future, withpredictions showing a slight
drop to 6.5 by the end of 2025and 6.4 by the end of 2026.
Again, just predictions.
These guys have been wrongbefore.
Despite numbers, industryexperts are advising potential

(01:05):
homebuyers not to let interestrates be the sole factor in
their decision-making process.
Currently, refinancing ratesare also on the rise, with the
30-year refinance rate sittingat 6.62%.
Homeowners looking to refinancemay want to consider locking in
rates sooner rather than later.

(01:26):
For those exploring mortgageoptions, remember that while the
30-year fixed rates providemore manageable monthly payments
, the 15-year mortgage remainsan attractive choice for paying
off a loan faster with lessinterest paid over time.
In broader economic news, theFederal Reserve is sounding the

(01:53):
alarm over mounting tariffthreats that could affect
multiple sectors in the economy,with US import tariffs under
the spotlights.
There are growing fears that wecould see a significant rise in
prices for both businesses andconsumers.
This comes after reports thattariffs could be expanded in the
coming months, affectingindustries ranging from

(02:15):
manufacturing to tech.
The latest round of tariffsconcerns comes as the Fed tries
to maintain a balance amidinflation pressures.
Recent data shows that importprices could rise 5 to 8 percent
depending on the scale of thetariff, which would further

(02:37):
exuberate inflation in thealready strained supply chain.
The ripple effect couldincrease the cost of everyone's
goods, from electronics tohousehold items, putting
additional pressures onconsumers as the post-disposable
income shrinks.

(02:57):
With the Fed's benchmarkinterest rate still hovering
between 5.25% and 5.5%,economists are also weighing in
on whether any further hikes arenecessary to curb inflation.
These macroeconomic issues willlikely dominate market

(03:18):
sentiment in the months to come,and analysts are closely
watching the Fed's next move, asam I.
In market news, us futures havetaken a significant hit as
investors grapple with growingconcerns over rising tariffs and
mounting geopolitical risk.

(03:38):
As of this morning, dow Jonesfutures are down by 0.85%, s&p
500 futures have fallen 1.1% andNasdaq futures dropped 1.25%.
These declines follow reportsthat new tariffs on steel and
aluminum imports will takeeffect next quarter after

(04:00):
sparking fears of supply chaindisruption.
And today is February 20th 2025, as I record this.
Economists are particularlyfocused on the industrial sector
, with many predicting apotential increase of 2% to 3%
in input costs for manufacturers.
This could affect companieslike Caterpillar, down 1.3% in

(04:25):
the pre-market trading, andBoeing, which saw a 1.8% decline
after warnings of highermaterial costs.
In addition to tariffs, ongoingtensions in Eastern Europe and
in the Middle East have drivenoil prices higher, with Brent
crude reaching $91.20 per barrel, up 2.5% from last week.

(04:49):
Energy stocks, includingChevron and ExxonMobil, have
climbed in response, with gainsof 0.7% and 0.9% respectively.
Meanwhile, the bond market hasseen yield US Treasury not rise
to 4.1%, up from 3.9% last week,as investors move to safer

(05:11):
assets amidst growing marketuncertainty.
With geopolitical riskscontinuing to escalate, market
volatility is expected topersist in the coming weeks.
So here's a quick recap becauseI know I gave you guys a lot
here.
Mortgage rates continue to rise,with 30-year fixed rate now at

(05:32):
6.6%.
If you're in the market to buyor refinance, keep an eye on
evolving rate trends and be sureto explore your options.
Two, the US Federal Reserve isclosely monitoring the impact of
rising tariffs, which couldpush consumer costs higher and
complicate efforts to manageinflation.
And three, the US marketfutures are down amid tariff

(05:56):
fears and geopolitical risk.
Market futures are down amidtariff fears and geopolitical
risk, with the Dow at S&P 500and Nasdaq all posting
pre-market declines.
Energy stocks saw a slightboost as oil price hit $91.20
per barrel, while bond yieldscontinue to rise.
Thanks for joining us on thisweek's weekly business brief.
Make sure you go and you checkout Wealthy AF and sign up for

(06:19):
our newsletter so you can stayup to date on all of our updates
.
Thanks for listening,appreciate you and peace out.