The biggest concern on the minds of prospective home buyers and real estate investors is the direction the rates are going. There has been both upward and downward movement lately, and economists, mortgage brokers, and bankers are watching long-term trends from a historical perspective to try to predict what lies ahead. Whether the rates go up or down, real estate is still a great way to invest long-term because the investment in a home will eventually turn into a profit. Most of the millionaires in this country have made their money in real estate and have been especially fortunate in this particular market.

Though rates have trended slightly lower recently, they are likely to continue rising due to inflation, the economy, and the war in Ukraine. All of these are volatile, largely unpredictable, constantly changing situations and have a significant effect on stock markets around the world. When markets have sharp downturns, investors typically take their money out of the stock market and place it in safer places like treasuries, in what is called the flight to security or the flight to safety, where there is more certainty that their investments will remain intact. The flight to safety happens whenever there is an upset in the world, so this behavior is a common occurrence. Older investors are more inclined to take this approach, as their years of future earning capacity are limited, whereas younger investors have a longer period ahead of them in which to recover from possible losses, and are willing to explore riskier investments such as cryptocurrencies. Have we seen the end of affordable mortgage rates? It’s a wait-and-see market as to where they will ultimately end up. Jeff’s guests include:

– Kim Tran (AM West Funding) shares available loan products.

– Jennifer Conrad (Malibu Funding) discusses the primary resident program.

– Wendy Van Wessel (Kind Lending) talks about “sticker shock” on interest rates.