Is the housing market starting to show signs of a slow down? Although the housing market has remained robust, it is not immune to the impact of inflation and other external economic factors.
For the first time in more than 40 years, the Federal Reserve raised short-term interest rates by 75 basis points on June 15 in an effort to rein in inflation, which has been above 8% in recent months.
The overnight lending rate is forecasted to conclude at around 3.4 percent, with further rate rises expected until 2022. This implies that the Federal Reserve will raise interest rates by a total of 1.75 percent throughout its four planned meetings this year. Credit cards, vehicle loans, and adjustable-rate mortgages will be more expensive to borrow as interest rates rise.
As a first-time home buyer, the present economy may be stifling your hopes of becoming a homeowner. With rising housing prices and inflation, is this the right time to take out your first mortgage? And what if you wait too long, will you be priced entirely out of the market?
In this episode, we discuss the current situation of the real estate market during this inflationary environment and the effect of high-interest rates on home buyers and investors. Join our hosts, wealth manager Lee Michael Murphy, career advisor Sergio Patterson and attorney Matthew McElroy. Tune in to this week’s episode of The Free Retiree Show.
What you’ll learn:
- How inflation impacts real estate
- Factors to consider when buying a home during inflationary environments
- The impact of high-interest rates on home buyers and investors
- When you should consider buying real estate