The Federal Reserve just put the nail into the coffin of the 2022 Housing Market! Quantitative Easing will end by March 2022. And interest rates are likely to increase significantly. This means higher mortgage rates and a big Housing Crash across America.
Jerome Powell just announced that the Fed will: 1) double the speed of QE Taper, ending it March 2022 and 2) indicated that interest rate hikes are likely in 2022. The combination of these factors will put heavy upward pressure on mortgage rates, making borrowing more expensive for home buyers and real estate investors.
This more expensive borrowing will have a big, negative impact on the 2022 Housing Market. And I believe it will cause a Housing Crash. But in certain cities more than others.
Real Estate Markets like Austin, Dallas, Denver, Salt Lake City, and Boise are most at risk since the mortgage payments in these markets are already 40-70% higher than the previous Housing Bubble. Any further increase in mortgage rates will turn these already unaffordable Housing Markets into housing demand wastelands.
Meanwhile – metros like Las Vegas, Chicago, Bridgeport, Hartford, and Miami are significantly more affordable today than they were in the 2007 Housing Bubble. That means there is theoretically more room for the home buyers and investors in these markets to absorb rate hikes.
Ultimately it’s important for you as a home buyer or real estate investor to do your research on the changes in Housing Affordability and Mortgage Payments in your market.
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0:00 The Fed Just Crashed the Market
1:27 Double Taper / Interest Rates UP!
3:10 2022 Mortgage Rate Spike Coming
4:44 Bubble to Bubble: $14,000 Payment
5:34 Las Vegas & Chicago are CHEAPER!
6:20 Dallas & Denver More EXPENSIVE!
7:26 Top 200 Housing Market Map
9:22 What You Need to Think About
10:05 Austin, TX is #1: 74% Increase in Payments
11:15 Pay Attention to this DATA!
13:08 Please Hit the Like Button!
#JeromePowell #HousingCrash #InterestRates
Originally published at https://www.youtube.com/watch?v=B3Ps7DdZzn0