BiggerPockets Real Estate Podcast J Scott: We’re Due for a Recession, But It Isn’t All Bad for Real Estate
29 snips
Jan 10, 2025 Join real estate expert J Scott, an investor and author experienced in navigating market ups and downs, as he predicts a looming recession. He discusses the implications of potential Trump policies on inflation and mortgage rates, arguing that now could still be a prime time to invest. Scott delves into the two-sided nature of economic cycles, highlighting the challenges of rising rates while providing insightful strategies for future real estate investments. With over 500 flipped homes under his belt, his insights are invaluable for investors aiming to thrive amidst uncertainty.
AI Snips
Chapters
Books
Transcript
Episode notes
Mortgage Rate Drivers
- Mortgage rates aren't directly set by the Fed, but by investor expectations regarding 10-year bond yields.
- These yields reflect investor sentiment about future inflation, so higher expected inflation means higher rates.
Inflationary Catalysts
- Several factors contribute to increasing inflation fears, including recent Fed rate cuts and higher-than-expected November inflation numbers.
- Potential Trump policies like tariffs and deportations could further exacerbate inflation.
Housing Affordability Outlook
- Current economic conditions, including low transaction volume and high mortgage rates, make housing affordability a challenge.
- Factors like decreasing mortgage rates or a potential recession could influence future affordability.
