Only time will tell. As much as things change, they remain the same. Interest rates are going up (or down). History repeats itself. These are some of the typical mortgage cliches that get tossed around. And yes, they are true! Everyone wonders where interest rates are headed, but clearly, when it was too low, we knew then that it will only go up. History does repeat itself.

Historically, when rates go up, we see a decline in housing sales that results in a lower demand for raw building materials. And if left unattended, will result to a higher unemployment as inflation and costs of goods increase.

There should be no doubt that mortgage rates have kissed goodbye to their record lows. They have soared higher in the past several months in response to inflation and the perceived steps that the Fed will need to take as a result.

At the end, the ongoing pandemic-related supply chain issues for everything from computer chips to automobiles….to lumber, it seems reasonable to think that inflation and the cost of living is rising and may continue to. Will this lead to a major recession?? Maybe. After all, history does repeat itself and many indicators point to the U.S. being on the path to recession.

Time will tell.

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