How Will the Fed Raising Rates Affect Home Prices?

2 years ago
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In this real estate market update, we give you an overview of what might happen to home prices if the Federal Reserve (Fed) raises interest rates in the United States.

This is a timely topic since as of this writing, the Federal reserve is contemplating raising interest rates once again, in a manner perhaps more aggressively than market participants might expect.

This tutorial video is helpful for any time frame however as we discuss generally what typically happens to the housing market when the Fed raises interest rates, its follow-on impacts to mortgage interest rates and marginal buyers.

We talk about the knock-on affects from not just higher mortgage interest rates, reduced buying power, fewer buyers but also what happens if higher interest rates induce a recession. Obviously, a recession is not good for home prices due to the resulting unemployment, negative wealth effects and so on.

Remember to also watch our other videos on why we think, contrary to popular opinion, that the Fed won't be able to raise rates, or raise them much!

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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