On The Market

207: What Happens If Interest Rates Stay High?

Apr 11, 2024

Experts discuss the unexpected scenario of high interest rates impacting the housing market. They advise investors to buy before rates fall and share strategies for making money in this environment. Chapters cover interest rate predictions, housing inventory trends, and investor strategies in a shifting market landscape.

37:54

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Quick takeaways

High interest rates may persist in 2024, affecting housing affordability and investor decisions.

Job market trends influence interest rate fluctuations, impacting economic stability and future rate adjustments.

Challenges in real estate market necessitate creative solutions for homebuyers and investors to build long-term wealth amid evolving market dynamics.

Deep dives

Impact of High Interest Rates on Housing Inventory and Investment Optimism

Despite initial optimism for declining mortgage rates, the podcast delves into the implications of persistent high interest rates. Discussions cover the effects on housing inventory, impacting first-time homebuyers and investors. Uncertainty arises due to unexpected economic strength, leading to a potential delay in rate cuts or even hints of rate hikes. While some remain confident in navigating the market, the conversation highlights the need to adapt investment strategies amid evolving economic conditions.

Introduction

2min

Navigating Interest Rate Uncertainty in Real Estate

8min

Analyzing Interest Rate Predictions and Housing Inventory Trends

4min

Navigating High-Interest Rates and Housing Market Dynamics

10min

Navigating Investor Strategies in a Shifting Market Landscape

2min

Maximizing Returns in Real Estate Investments

6min

Benefits of Real Estate Investing and Encouragement Amidst Uncertainties

4min

Mortgage rates were supposed to be going down by now, but what happened? Even in late 2023, many housing market experts predicted that we’d be seeing high to mid six percent mortgage rates at this point and hovering around the high five percent rate mark by the end of the year, but the Fed isn’t showing any sign of lowering rates soon. Some experts even believe rates could go UP again this year as the job market stays hot and the economy sees unprecedented strength. This begs the question: What IF mortgage rates remain high?

It’s a reality many of us don’t want to see, but 2024 could end with minor, if any, rate cuts, keeping monthly mortgage payments high and affordability low. So, what should an investor do in this situation? Sit on the sidelines? Invest in a different asset class? Pray to Jerome Powell? While that last option may be worthwhile, top real estate investors are saying that NOW is the time to buy BEFORE rates fall. What do we mean?

We’ve got the entire expert investor panel here to give their take on what investors should do IF rates don’t fall. From house flipping to long-term buy and hold rentals, our nationwide panel of investors shares exactly what they’re doing to make money even with high interest rates. Plus, we’ll give our predictions on when rates could fall, what will happen to housing inventory, what young people should do NOW to get their first house, and why investors need to “reset” if they want to thrive in this high rate housing market.

In This Episode We Cover:

Mortgage rate predictions and when interest rates could finally start falling

What should investors do IF mortgage rates stay high throughout 2024

The “lock-in effect” and whether or not high rates are leading to lower inventory

The homes that are flying off the market in many areas (and the ones that are sitting)

How young people can creatively get into their first home or investment property

Why investors MUST “reset” their expectations if they’re to build wealth in this housing market

And So Much More!

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