Inflation is Up. But since our last housing market crash in 2007 we have many protections in place to prevent a crash similar to the crash we experienced in 2007. In the old days, “anyone with breath in their bodies could get a mortgage” but not so today. Underwriting standards have been improved and lending laws are much stricter in 2022. In fact, it is not easy to obtain a home loan due to the strict guidelines and the verifications all lenders apply to all loan applicants. Housing and interest rates are up due to the economy, but at this date, the market remains steady.
The Plus side, all Homeowners have record amounts of equity this time around. Even if prices were to drop, which is not expected, lots of equity has been built up to protect the homeowner.
So, what can we expect, well with inflation and rates rising, the housing market can expect a slow-down.
If you are planning to buy a home and want to gauge how inflation and higher rates will influence your goals, reach out to a mortgage professional and they will crunch the numbers for you.