The average duration of housing appreciation and depreciation in a typical housing cycle is approximately five to seven years. We are in the 10th year of this cycle since the market bottomed out in 2008.
We are entering into a rate tightening cycle. Eleven out of the last twelve times that the Fed went on a rate tightening cycle, it led to a recession. Generally, as the economy slows down, housing prices can decrease or flatten as people begin to lose their jobs and income growth slows. Economists anticipate that we will experience five to six rate hikes by mid-2019. The Federal Reserve has begun reducing its holdings of U.S. Treasury securities and mortgage-backed securities. This should put upward pressure on mortgage rates. Rising rates will translate into costlier loans, which could discourage potential new homebuyers.作者: momolove 时间: 2019-1-6 10:27
