What the recent bank collapses mean for the real estate market.
Have you heard the news about the recent bank collapses? If so, you might wonder how that will affect inflation and interest rates. If you are, you’re not alone. Many people worry about this negatively affecting the real estate market, so I am here today to clarify things.
If you haven’t seen the stories, the Silicon Valley Bank went out of business. Thankfully, all of the people got their money back. However, there are rumors that more banks will be collapsing soon. Many people are worried about inflation because of this, but you should know that the Federal Reserve is more worried about the banks than inflation.
As a result, experts predict that the Fed will lower interest rates, which means great things for the real estate market. Even if interest rates go up slightly, mortgage rates will go down. Low rates fuel a crazy market, as we all saw during the pandemic from 2019 to 2022. Rates are currently around 6.5%, but they’re expected to go down to 5% soon, which means that the market will pick up quickly and home prices will rise. Therefore, even though the banks collapsing is bad news, it’s translating into good news for real estate.
I recommend that you jump on this opportunity and buy a home now. Start finding professionals who can help you, like me. If you have more questions or want to go a little deeper into this, feel free to call me directly at (760) 201-9252
. I look forward to hearing from you.