With the Fed now radically tightening monetary policy, I recently had a timely conversation with Keith Weinhold of Get Rich Education about the impact that higher interest rates is likely to have on home prices and real estate investors.
Our discussion focused on the forces pushing interest rates higher:1. The Fed’s intention to continue hiking the Federal Funds Rate.
2. Greatly expanded government borrowing to fund gaping budget deficits following the recent tax cuts and spending increases enacted by Congress.
3. The reversal of Quantitative Easing, with the Fed now destroying $30 billion each month.
4. The tapering of Quantitative Easing in Europe.
5. The possibility that a trade war will dramatically reduce capital inflows into the United States.
6. And the fears that trade tariffs will cause a spike in US inflation.
Any one of these factors has the potential to push government bond yields and mortgage rates higher. In combination, they create a toxic combination that could bring about the greatest surge in interest rates in decades. Real estate investors needs to understand these risks.Click
here to listen to this interview now.
Get Rich Education is dedicated to teaching individuals how to accumulate wealth through investing in rental properties. Keith’s excellent weekly podcast is one of America’s top investment shows. To learn more, visit the Get Rich Education website at:
https://www.getricheducation.com