How INFLATION influences REAL ESTATE

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  • From Noah Rosenblatt posted by SolveCast
  • 6 months ago
  • 1
  • Starts 620 seconds

When central banks go in and go haywire, you know, and they print too much money and there's too much money chasing too few goods type of thing. But the reason it's important is because generally speaking, what central banks have to do to combat inflation is raise rates. That the raise rates and that, that should strengthen the currency. 

It should, uh, it also kind of creates a risk off asset classes tend to go down and prices. So it's a tightening, it's a tightening move. Generally it's not very. You know, economically growth oriented to do it to cool things down. So if you think about it from a political standpoint, it's not like the most uh, it's not what the people want to hear. 

You know what I'm saying? But you have to raise rates to combat this and stop it. This is why the fed tracks, this is why the fish trap. And if you raise rates, what's happening to those mortgage rates. So the Morgans are going to know if mortgage rates. Then the houses, it gets a little more unaffordable from a financing standpoint and to compensate for the unaffordability buyers will bid less and the price will come down. 


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