{"id":11502,"date":"2019-12-03T12:47:54","date_gmt":"2019-12-03T17:47:54","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=11502"},"modified":"2019-12-03T12:48:40","modified_gmt":"2019-12-03T17:48:40","slug":"mmt-modern-monetary-theory-or-magical-mortgage-tease","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/","title":{"rendered":"MMT: Modern Monetary Theory, or Magical Mortgage Tease?"},"content":{"rendered":"\r\n

For almost 10 years now, experts everywhere have called for rising mortgage rates. Shortly after the financial crisis, everyone everywhere felt bad about buying anything. But as we bounced from the March 2009 lows, slowly the financial gears began ticking again and risk appetite came back. Let’s dive a bit deeper into MMT, or modern monetary theory.\u00a0<\/p>\r\n\r\n\r\n\r\n

In the real estate world, some markets recovered much more slowly than others. California and New York City<\/a> were among the first to stage a comeback, while parts of Seattle and Las Vegas continued to bottom through 2011. The entire time, experts everywhere gave all kinds of excuses why mortgage rates would rise<\/a>, and very soon!<\/p>\r\n\r\n

\u00a0
\"\"<\/p>\r\n

Dec 2010, NY Times<\/center>\r\n

 <\/p>\r\n

Mortgage Rate Predictions<\/h2>\r\n\r\n

“The Mortgage Bankers\u2019 Association, a trade group, predicts that 30-year fixed rates will inch up to 5.1 percent by the end of 2011 and reach 5.7 percent in 2012.” How has that gone? Turns out 3 years later, rates were still below 4.0% and stayed there all the way through Trump’s 2016 election.<\/p>\r\n\r\n

\u00a0
\"\"<\/p>\r\n

Benchmark 30-year mortgage rates<\/strong><\/center>
<\/center>\r\n

After more false starts, does anyone expect to go back to the days where 6% mortgage rates seemed like a good deal? And what does that mean for real estate investors searching for good yields<\/a>? Cap rates for Manhattan<\/a> condos still average less than 3% (and that’s on the high end). Condo prices are also flat or dropping. You would get a better deal in many other asset classes, or real estate in other markets.<\/p>\r\n

2020 Mortgage Rate<\/h2>\r\n\r\n\r\n\r\n

As we approach 2020, real estate investors seem to be taking a wait-and-see approach. The real winners are those who already own properties and have enjoyed favorable refinancing rates. For example, anyone on a 5\/1 ARM set to reset soon will be delighted at the newer low interest rate levels.<\/p>\r\n\r\n\r\n\r\n

As for the Federal Reserve hiking rates, Wall Street isn’t betting on it. New trade war tensions have shaken markets off their all-time highs, with the president now hinting the trade deal might not come until after the 2020 election<\/a>!<\/p>\r\n

Editor’s Note: We updated this article to enhance readability.\u00a0<\/em><\/p>\r\n","protected":false},"excerpt":{"rendered":"

For almost 10 years now, experts everywhere have called for rising mortgage rates. Shortly after the financial crisis, everyone everywhere felt bad about buying anything. But as we bounced from the March 2009 lows, slowly the financial gears began ticking again and risk appetite came back. Let’s dive a bit deeper into MMT, or modern […]<\/p>\n","protected":false},"author":4,"featured_media":11543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[380],"tags":[308,307,305,309,306],"class_list":{"0":"post-11502","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing","8":"tag-cap-rates","9":"tag-condos","10":"tag-interest-rates","11":"tag-investing","12":"tag-trade-war"},"yoast_head":"\nMMT: Modern Monetary Theory, or Magical Mortgage Tease? - Real Estate Topics, Tips, and Guides<\/title>\n<meta name=\"description\" content=\"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MMT: Modern Monetary Theory, or Magical Mortgage Tease?\" \/>\n<meta property=\"og:description\" content=\"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\" \/>\n<meta property=\"og:site_name\" content=\"Real Estate Topics, Tips, and Guides\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/renthopapartments\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-03T17:47:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-03T17:48:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Lee Lin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@renthop\" \/>\n<meta name=\"twitter:site\" content=\"@renthop\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lee Lin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\"},\"author\":{\"name\":\"Lee Lin\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/5877a1d4b27a98e84d9840c6aea99af7\"},\"headline\":\"MMT: Modern Monetary Theory, or Magical Mortgage Tease?\",\"datePublished\":\"2019-12-03T17:47:54+00:00\",\"dateModified\":\"2019-12-03T17:48:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\"},\"wordCount\":346,\"publisher\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png\",\"keywords\":[\"cap rates\",\"condos\",\"interest rates\",\"investing\",\"trade war\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\",\"url\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\",\"name\":\"MMT: Modern Monetary Theory, or Magical Mortgage Tease? - Real Estate Topics, Tips, and Guides\",\"isPartOf\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png\",\"datePublished\":\"2019-12-03T17:47:54+00:00\",\"dateModified\":\"2019-12-03T17:48:40+00:00\",\"description\":\"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?\",\"breadcrumb\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage\",\"url\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png\",\"contentUrl\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png\",\"width\":1024,\"height\":512},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.renthop.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"MMT: Modern Monetary Theory, or Magical Mortgage Tease?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#website\",\"url\":\"https:\/\/www.renthop.com\/blog\/\",\"name\":\"Real Estate Topics, Tips, and Guides\",\"description\":\"Real Estate Blog\",\"publisher\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.renthop.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#organization\",\"name\":\"RentHop\",\"url\":\"https:\/\/www.renthop.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2023\/07\/renthop-logo-2022-1.png\",\"contentUrl\":\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2023\/07\/renthop-logo-2022-1.png\",\"width\":1044,\"height\":266,\"caption\":\"RentHop\"},\"image\":{\"@id\":\"https:\/\/www.renthop.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/renthopapartments\",\"https:\/\/x.com\/renthop\",\"https:\/\/www.instagram.com\/renthop\",\"https:\/\/www.tiktok.com\/@renthopofficial\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/5877a1d4b27a98e84d9840c6aea99af7\",\"name\":\"Lee Lin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7b4b1bbaae3cb6097f29213cbd5fd183?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7b4b1bbaae3cb6097f29213cbd5fd183?s=96&d=mm&r=g\",\"caption\":\"Lee Lin\"},\"description\":\"Lee is a data geek from MIT who spent years at quantitative hedge funds cranking out models to explain and predict financial markets. Real estate has always been a big part of Lee's life. He grew up helping out at his parents' Jersey Shore motels, became a landlord his first year out of college, analyzed mortgages on a fixed-income trading desk, and acquired a New York real estate license. At RentHop, he combines his nerd talents and real estate knowledge to constantly tweak the secret HopScore. He currently lives near Bryant Park and his favorite restaurant was Cafe Zaiya (now known as Tomiz).\",\"url\":\"https:\/\/www.renthop.com\/blog\/author\/lee\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"MMT: Modern Monetary Theory, or Magical Mortgage Tease? - Real Estate Topics, Tips, and Guides","description":"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/","og_locale":"en_US","og_type":"article","og_title":"MMT: Modern Monetary Theory, or Magical Mortgage Tease?","og_description":"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?","og_url":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/","og_site_name":"Real Estate Topics, Tips, and Guides","article_publisher":"https:\/\/www.facebook.com\/renthopapartments","article_published_time":"2019-12-03T17:47:54+00:00","article_modified_time":"2019-12-03T17:48:40+00:00","og_image":[{"width":1024,"height":512,"url":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png","type":"image\/png"}],"author":"Lee Lin","twitter_card":"summary_large_image","twitter_creator":"@renthop","twitter_site":"@renthop","twitter_misc":{"Written by":"Lee Lin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#article","isPartOf":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/"},"author":{"name":"Lee Lin","@id":"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/5877a1d4b27a98e84d9840c6aea99af7"},"headline":"MMT: Modern Monetary Theory, or Magical Mortgage Tease?","datePublished":"2019-12-03T17:47:54+00:00","dateModified":"2019-12-03T17:48:40+00:00","mainEntityOfPage":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/"},"wordCount":346,"publisher":{"@id":"https:\/\/www.renthop.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage"},"thumbnailUrl":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png","keywords":["cap rates","condos","interest rates","investing","trade war"],"articleSection":["Investing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/","url":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/","name":"MMT: Modern Monetary Theory, or Magical Mortgage Tease? - Real Estate Topics, Tips, and Guides","isPartOf":{"@id":"https:\/\/www.renthop.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage"},"image":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage"},"thumbnailUrl":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png","datePublished":"2019-12-03T17:47:54+00:00","dateModified":"2019-12-03T17:48:40+00:00","description":"What is modern monetary theory (MMT) and how does it play into the current real estate market and mortgage rates?","breadcrumb":{"@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#primaryimage","url":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png","contentUrl":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2019\/12\/mortgagerates.png","width":1024,"height":512},{"@type":"BreadcrumbList","@id":"https:\/\/www.renthop.com\/blog\/mmt-modern-monetary-theory-or-magical-mortgage-tease\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.renthop.com\/blog\/"},{"@type":"ListItem","position":2,"name":"MMT: Modern Monetary Theory, or Magical Mortgage Tease?"}]},{"@type":"WebSite","@id":"https:\/\/www.renthop.com\/blog\/#website","url":"https:\/\/www.renthop.com\/blog\/","name":"Real Estate Topics, Tips, and Guides","description":"Real Estate Blog","publisher":{"@id":"https:\/\/www.renthop.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.renthop.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.renthop.com\/blog\/#organization","name":"RentHop","url":"https:\/\/www.renthop.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.renthop.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2023\/07\/renthop-logo-2022-1.png","contentUrl":"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2023\/07\/renthop-logo-2022-1.png","width":1044,"height":266,"caption":"RentHop"},"image":{"@id":"https:\/\/www.renthop.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/renthopapartments","https:\/\/x.com\/renthop","https:\/\/www.instagram.com\/renthop","https:\/\/www.tiktok.com\/@renthopofficial"]},{"@type":"Person","@id":"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/5877a1d4b27a98e84d9840c6aea99af7","name":"Lee Lin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.renthop.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7b4b1bbaae3cb6097f29213cbd5fd183?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7b4b1bbaae3cb6097f29213cbd5fd183?s=96&d=mm&r=g","caption":"Lee Lin"},"description":"Lee is a data geek from MIT who spent years at quantitative hedge funds cranking out models to explain and predict financial markets. Real estate has always been a big part of Lee's life. He grew up helping out at his parents' Jersey Shore motels, became a landlord his first year out of college, analyzed mortgages on a fixed-income trading desk, and acquired a New York real estate license. At RentHop, he combines his nerd talents and real estate knowledge to constantly tweak the secret HopScore. He currently lives near Bryant Park and his favorite restaurant was Cafe Zaiya (now known as Tomiz).","url":"https:\/\/www.renthop.com\/blog\/author\/lee\/"}]}},"modified_by":"Allyson Waddell","_links":{"self":[{"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/posts\/11502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/comments?post=11502"}],"version-history":[{"count":9,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/posts\/11502\/revisions"}],"predecessor-version":[{"id":11557,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/posts\/11502\/revisions\/11557"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/media\/11543"}],"wp:attachment":[{"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/media?parent=11502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/categories?post=11502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.renthop.com\/blog\/wp-json\/wp\/v2\/tags?post=11502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}