Richard Stein – Realtor®, Douglas Elliman, GREEN, SFR, CBR, eCertified®

Local Agent, Worldwide Marketing – Douglas Elliman Real Estate formerly Prudential Douglas Elliman Real Estate

Here’s what faster inflation and rising mortgage rates mean for housing

Mark Fleming, First American Financial Corporation

home construction

In the 40 years preceding the Great Recession, the housing market never experienced mortgage rates as low as they are today.Reuters/Mike Blake

  • The US economy is experiencing healthy economic growth and a strong labor market.
  • Combined those are increasing the risk of rising inflation and higher interest rates.
  • This could lead to reduced house-buying power.

As the March Federal Reserve (Fed) meeting approaches, overall positive economic conditions are troubling those who follow the Fed closely. Many might pose the question, why would positive economic conditions be troubling?

Healthy economic growth and a strong labor market are increasing the risk of rising inflation, which increases the likelihood the Fed will raise rates faster than currently expected. The latestjobs’ report indicated a strong start to 2018, with total non-farm payroll employment increasing by 313,000.

Impressively, the labor market strength was broad-based, as all industries experienced……..

Full story at BUSINESS INSIDER

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