Inflation just won’t stop. The rate of inflation is increasing, not slowing down. 2% target is so far away. Expect 10-15% mortgage rates. Does buying a house at 10-15% sound like smart investing to you? Yeah, to nobody else either 😂 the only buyers will be cash buyers (who buying huge buildings to rent by the unit) and these prices will collapse.
Improbable, debt too high
As fuel prices subside, rent is going to skyrocket.
Why?
Higher interest rates means people won’t buy houses and will be renting. https://www.linkedin.com/feed/news/rate-hikes-are-pushing-rents-up-5905778
We have traded one incompetent presidential administration for another. Eight years of shitty leadership...kill me
8 years??? We are pushing 20.
Question: are we in the worst 40 year window of the presidency in US history?
Maybe rate hike is not the solution. Every economic crisis has a different solution and not that the older methods of raising rates will fix it everytime. Production needs to be increased and Russian war needs to come to an end. Else with rate hikes only common man will suffer without any fix to the problem
Russian war will come to an end only if Putin says so, aka not any time soon. In the meantime, no one wants to intervene
Fuel prices are coming down already, so the latest inflation isn’t on fuel. It’s going to come down or rent will keep it pushing above. Next month data will make it obvious.
Your analysis is exquisite.
Okay cool.
Well at least I won’t be paying rent
Yeah I pay rent.. so? I’m really confused on the point you are trying to make.
Uber got a house, even it was expensive, she/he is ok with that bc they’re not paying 3k (-avg rent if you have wife and kids in HCOL area) a month on rent.
The fact that we’re dependent on curbing lending as a hope to stem inflation shows how little control there is in the market once inflation happens. Oh cool we’re going to stop large consumer debt borrowing, that’s really gonna make an impact on the price of everyday necessities and commodities that people aren’t using credit/debt to pay for… Inflation will continue to increase and rate hikes will do little to stop it, maybe will slow the housing market eventually but that’s about it. That’s probably why they aren’t raising the rates ridiculous amounts, because they know they’re more decoupled than people think. Even now people are buying houses immediately still without even seeing them and that’s at 5%+ rates, which 3 years ago people would have said were shit rates.
So buying a house during the insane bobble prices was considered smart (hence the bubble). But not during the insane interest rates times. Why is one insanity better than the other ?
Because house prices never go down!
It did go down after 2008 bubble. And it’s going down yet again.
Thank you, Captain Obvious 🫡