The events happening in the world at large also affect things on a local and personal level, including your ability to get a loan. The invasion of Ukraine by Russia has brought about wartime economics, which we have not had to deal with on a global scale for a long time. Commodities, whether simple things like eggs and butter or more complex things like metals to produce computer chips, for example, are always strongly impacted by inflationary pressures. When supplies are interrupted, prices go up and thus detract from your purchasing power. The structure of importing and exporting goods shifts, and any available goods that cannot be imported will be scarce, cost more, and take up a larger portion of the monthly income that could be spent on a mortgage. If rates and home prices go up by too much simultaneously, that can add an extra $400-$600/month just for a mortgage on top of everything else becoming much more expensive. The volatility in the markets will likely send investors to the safer haven of US Treasuries. The effect on the cost of doing business, supply chain issues, and what we do daily will all be in a constant state of change in the face of the unpredictability of the length and severity of the war. Will the Fed continue to tighten as resources are being drawn away to help the other countries in crisis? Will inflation continue to rise over a longer period than we anticipate? All we can do is wait and see how things develop. This week, Jeff’s guests include:

– Brenda Scott of Malibu Funding discusses various loan programs, including FHA.

– Wendy Van Wessel from Kind Lending talks about new programs.

– Charles Giscombe, also of Malibu Funding, joins Jeff to talk about the worldwide crisis and predicts the effect on lending.