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Mortgage rates are rising fast, will your home value collapse like in 2008? Briton Hill
With mortgage rates now at the highest level since January 2020, homeowners may be worried about a slowdown in demand and a correction in prices.
Briton Hill, president of Weber Global Management, discusses with David Lin, anchor for Kitco News his outlook for the real estate markets in the U.S., as well as some of the best property investment strategies.
Hill said that there are three main macroeconomic forces at play that will affect the real estate markets: inflation, supply chain issues, and rising interest rates.
"I think overall, there's a greater headwind for further appreciation in most areas than further tailwind. For the past four or so years we've had interest rates falling and we've had a great bond bull market that's pushed asset prices up and we're starting to see those forces change a little bit and I think a big determining factor will be how is it going to take to get this supply chain crisis under wraps," Hill said. "That's putting a lot of pressure on shooting house prices up because building costs are so expensive." Read More
Timestamp:
0:00 - Interest rates and real estate
3:58 - Real estate as an inflation hedge
5:05 - Real estate investment strategies
10:40 - Good places for rental yield
13:40 - Red flags to watch before signing a deal
16:30 - Cash lending on real estate
19:00 - Buying distressed properties
19:44 - How much mortgage to take?
22:40 - Risks to property value
22:40 - Housing starts and lumber prices
26:47 - Condos vs. houses
Source: Kitco.com
Disclaimer: This article and video are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
