Market Crash Coming?

Today the Federal Reserve released inflation data of 5.4%. For every 1% the Federal Reserve increases interest rates, there is a 10% drop in real estate prices. If inflation continues, the Federal Reserve will be forced to raise interest rates in Q4 2021 or Q1 2022.

Plus forbearance will end in June 2021. Home owners will need to come up with all missed payments at once or work with their lender. Lenders do not want to foreclose on properties but also can't allow those to not pay their mortgages either. Those who miss a single payment will harm their credit scores and not be able to refinance at higher rates. Most of these properties will likely hit the market Q4 2021 or Q1 2022 at the same time prices are dropping.

Historically low interest rates and short supply is the reason for all time high prices. But soon, a market crash due to higher interest rates and over supply may take over within a few months.

What's your take on what might happen?

Last Liked - 13 days ago by TodayWeBuy
TodayWeBuy · Topic · 13 days · 386 views LLC, Camarillo, CA
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