Will Interest Rates Crash The Housing Market
With the news of interest rates rapidly increasing and mortgage products being removed across lenders, it’s understandable to question whether interest rates will cause a crash in the housing market. In this episode, Mark explores why this may or may not happen and the other issues the current turmoil in the market could cause. KEY TAKEAWAYS UK base rate is said to hit 6% by May 2023 but this is a market expectation, it may not happen. There is still demand in the housing market currently but there has been a significant slowdown in the past 6 months. One way the government could speed up growth in the economy and increase productivity is to remove a lot of unnecessary EU regulations. The media loves bad news and anything they can sensationalise, hence them talking about housing market crashes and a sterling crisis. If you do have debt, inflation does have an upside, inflation means your debt is lowered. In a residential mortgage market, Mark prefers to use fixed-term mortgages, especially long-term ones if you know you aren’t going to move, you can still get good rates now. BEST MOMENTS “We’ve gone straight through the crossroads now and things are changing quite rapidly” “Demand will probably start dropping considerably, we’re probably in recession already” “Could house prices crash? Absolutely” “History tells us when inflation rates start to increase they do so quite quickly” VALUABLE RESOURCES https://www.youtube.com/user/progressiveproperty https://www.progressiveproperty.co.uk/the-progressive-co-founders/ ABOUT THE HOST Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties. CONTACT METHOD Email: [email protected] LinkedIn: https://www.linkedin.com/in/markhomer1 Facebook: https://www.facebook.com/markprogressive Twitter: https://twitter.com/markprogressive‘Brought to you by Progressive Media’: https://progressivemedia.uk/