Reuven Kahane | Inflationary Pressures and Interest Rates | |
Gas prices are a significant driver of inflation, as rising energy costs influence the price of goods and services across the economy. If gas prices rise in 2024, inflation could increase, prompting the Federal Reserve to raise interest rates to curb inflationary pressures. Rising interest rates have a direct effect on the real estate market because they make borrowing more expensive. As mortgage rates rise, the cost of financing a home purchase increases, reducing the purchasing power of potential homebuyers. This could cool demand for real estate, as some buyers might be priced out of the market, or may delay purchases in anticipation of lower prices or lower interest rates in the future. In a high-interest-rate environment, property prices could flatten or decline, especially in luxury markets or in areas where speculative buying has been prevalent. On the other hand, areas with strong demand and limited supply (like many parts of New York City) might continue to see price increases, albeit at a slower pace. | |
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| Target State: New York Target City : New York Last Update : Oct 26, 2024 11:44 PM Number of Views: 46 | Item Owner : Reuven Kahane Contact Email: Contact Phone: (None) |
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