Is the housing market going to crash?
Does this mean I can’t buy a house?
Buying a house is part of the American dream. The last few years have been pretty good as far as real estate appreciation goes, as this chart shows:
That may be about to change, however.
According to several articles such as this one, interest rates are going up.
For those of us who have been following the markets, this is not a surprise. After all, there has been a recent rise in bond yields and mortgage rates typically move in sympathy. Part of what is driving this trend is the expectation of inflation.
Again, this is not a surprise due to several factors. First, the upcoming stimulus payments will increase money supply. Second, there is an expectation that the economy will start to recover.
Even Dr. Fauci sounded cautiously optimistic when I caught him on NPR.
