According to an article from Bloomberg, homebuyers are pulling back as central banks raise interest rates at the fastest pace in decades, sending house prices tumbling. Meanwhile, millions of people who borrowed cheaply to purchase homes during the pandemic boom face higher payments as loans reset.
In today's episode of The Higher Standard, Chris and Saied discuss this painful housing reset in some of the hottest markets around the world, even as some so-called influencers continue to claim that house prices won't fall in the U.S. - even though they already are.
They discuss the increase in rent that appears to be rising as fast as the cost of buying (as in, rising interest rates). The latest figures from the Mortgage Bankers Association and the US Census Bureau show that rents have risen approximately 10% since the fourth quarter of 2020.
They look at Fed Governor Christopher Waller's comments that he expects to raise the central bank’s benchmark interest rate 75 basis points this month, though he’s open to a larger move depending on incoming data.
Chris and Saied also revisit the Inflation Reduction Act (Chris is still not a fan) and explain why it really is about printing money, despite what the naysayers claim.
This is a show you do not want to miss! Join Chris and Saied for this fascinating conversation.
What You’ll Learn in this Show:
The latest figures from the Mortgage Bankers Association and the US Census Bureau, showing that rents have risen approximately 10% since the fourth quarter of 2020.
Fed Governor Christopher Waller's recent comments about an expected 75 basis point increase, and the reasons why he's comfortable with an even higher increase if required.
The Inflation Reduction Act and why it really IS about printing money, despite what the naysayers claim.