Quote:
Originally Posted by Slava
Yeah, but the counterpoint is that the rate hikes drive up housing in a couple ways. The first is the obvious that mortgage rates increase for people with variable mortgages, and people who are renewing from the mortgage they had a five year term on from 2018. Then you have rental increases because the underlying costs for the owner have increased (assuming they have an outstanding mortgage).
And lastly, it decreases the pool of would-be sellers, because that mortgage they have for say 2% would now be 5% on the new place. Decreased sellers means less inventory and we've been experiencing that for the past few months.
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But inflation also increases housing costs. Not an easy balance to get right.