With supply shortages all over the news, there’s no way it could affect the real estate market. Or could it? The answer is yes!
Supply shortages are impacting many markets, including the real estate market. Interest rates are rising and causing waves in the market. Let’s connect the dots. The biggest thing to look at here is the economy, it’s not recovering as fast as many were anticipating due to the supply shortages.
Sam Khater from Freddie Mac says this about the supply shortages, “The broadening of inflation and emerging energy supply shortages which compound other material and labor shortages.” This has led the Federal Reserve to change course in regards to how they are dealing with mortgages.
Referencing increasing interest rates, Sam Khater from Freddie Mac says, “Many factors led to this increase including the Federal Reserve communicating that it will taper its support to the capital markets.”
Let’s bring this together – supply shortages have led to a slow economy, which has led to the Federal Reserve tapering their activity, which has driven up interest rates! While no one is anticipating a sharp spike in rates, buyers are itching to get in at as low a rate as possible, driving the sellers market we are currently seeing.
So buyers, get in while rates are low!
Sellers, there are plenty of buyer out there ready to buy your home!
Look out for more information about the housing market and how it may affect you.