Tuesday, May 29, 2012

Inflation in Our Future: How Inflation Might Effect Your Housing Investment Decisions

How are the latest economic developments going to affect mortgage rates Los Angeles?
Most pundits expect inflation to increase rapidly over the next 24 months.  The massive pumping of the money supply and printing of money by the Fed to keep up with the US deficit is expected to eventually result in too many greenbacks chasing too few goods and services.  This will be especially true as more folks get jobs and pent up demand results in draw downs of inventory. 

We have seen it in the past.  Eventually this will effect both expectations of rising prices for real estate and affordability as incomes rise due to inflation.  There will certainly be an offset due to increased mortgage interest rates, but the overall result is very likely to be increased home and apartment prices.

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