BiggerPockets Real Estate Podcast

935: BiggerNews: Investing with High Rates, Stubborn Inflation, & Low Supply w/Kathy Fettke

Apr 12, 2024

Seasoned investor Kathy Fettke discusses navigating high mortgage rates, inflation concerns, and supply constraints in the real estate market. Topics include strategies for getting low interest rates, saving against inflation, millennials' impact on housing prices, and investing in areas with strong economic fundamentals.

35:00

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Episode guests

Kathy Fettke

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Quick takeaways

In a high-interest-rate environment, investors can seize opportunities by adjusting their strategies to new market conditions.

Real estate remains a favorable option for investors to hedge against potential inflationary pressures.

Deep dives

The Impact of Stimulus Pullback on Mortgage Rates

Mortgage rates are staying high due to the pullback of stimulus measures implemented during COVID. The Federal Reserve's policies, bond yields, and demand for mortgage-backed securities are all contributing factors. Despite expectations of lower rates, various market dynamics are keeping mortgage rates elevated.

Introduction

2min

Analyzing the Impact of Economic Stimulus on Mortgage Rates

7min

Real Estate Investing Trends and Inflation Concerns

9min

Analyzing Inflation's Impact on Assets and Part-time Work Trends

2min

Diverse Perspectives on Part-Time Work and Business Solutions

9min

Analysis of Millennials' Impact on Housing Prices

5min

Exploring Millennial Housing Demand and Housing Price Influencers

4min

Mortgage rates are high, supply is low, and inflation just won’t go away. These market conditions make investing in real estate harder than ever…or so most investors think. The truth? This housing market isn’t all that different from years past, and if you know which moves to make, you can get ahead of all the other investors without them noticing. What do we mean? We’ve got a seasoned investor with over thirty years of rental property experience on the show, ready to share how buying during “high” rates can be a huge advantage.

But that’s not all we’re getting into on this BiggerNews episode. We’ve got questions directly from BiggerPockets listeners that we’re throwing at expert investor Kathy Fettke to see what time-tested advice she’d give. First, a listener wants to know why mortgage rates aren’t falling and how to get into the real estate investing game during a time like this. Then, we discuss how investors can save themselves against inflation. With a spike in part-time work, could the American economy be showing signs of weakness? Finally, we answer the question everyone has on their minds: Is it the darn millennials’ fault for causing these high home prices?

Want to ask a question for a future BiggerNews episode? Post your question in the BiggerPockets forums and get answers from a community of over 2,000,000 real estate investors!

In This Episode We Cover:

Mortgage rates explained and why interest rates are staying so high

Sneaky ways to snag a LOW interest rate in 2024 (Kathy got 4.75%!)

The best hedge against inflation and how to protect the money you have

Rising part-time work and whether or not this is a recession warning sign

Did millennials cause this unaffordable housing market?

And So Much More!

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