The war in Ukraine is devastating in the human toll it is taking on the people involved and has an enormous impact on the world economy, another element adding to the cost of everything going up. Even going to work or driving the kids to school costs about $100 a week to fill the gas tank, which would have been unheard of last year, and that extra money at the pump cuts into your purchasing power and the ability to buy a home. Inflation affects the amount of money you can afford to put toward a mortgage, and close to 500 cities in the US have a median home value of over $1M. If inflation keeps going up, that’s a price that most homebuyers will come up against more frequently as home prices skyrocket.

The Federal Jobs Report states that 678,000 new jobs were created in February, which is a good thing, showing the strength and power of the US economy in increased job opportunities and income. Unfortunately, that higher income is being eroded by inflation and as a byproduct of the pandemic. Logic would dictate that house prices would go down as a result, but they have gone up 15-20% year-over-year. The war has also caused the ‘flight to safety’ to US Treasuries by investors around the world, a phenomenon occurring anytime there is a natural disaster, extreme weather event, or global uncertainty. This will, in turn, make the 10-year note drop. The Fed has indicated that it plans to push the interest rates up several times this year, affecting mortgages, car loans, credit cards, and anywhere money is on loan. Will they balance each other out? What will be the long-term effects of the war on our economy and the housing market? This week, Jeff’s guests include:

– Noah Shuffman of Caliber Home Loans discusses current market and interest rate volatility.

– Anthony Alleva from PRMG talks about wholesale products.

– LaWanna Bradford of The Bradford Group joins the show with an update on the Atlanta, GA, market.