YOUTUBE VIDEO Jerome Powell and the Federal Reserve could Crash the US Housing Market in 2022. Home Buyers and Real Estate Investors need to prepare themselves for higher Mortgage Rates and the potential Real Estate Crash that could come.
And it all has to do with Inflation, which just hit 8.5% in March 2022. Surging Inflation has caused the Fed to tighten monetary policy, with the expectations of higher interest rates into the future.
The expectation of higher interest rates has already spilled over into higher Mortgage Rates, with the 30-Year Fixed increasing from 3% to 5% over the last four months. Given that the Fed owns nearly $3 Trillion in Mortgages, and is potentially planning to sell their portfolio to reduce their balance sheet, this means Mortgage Rates could surge higher in coming months. And that the US Housing Bubble could pop.