55: Has Inflation Peaked? There’s Hope Behind the High CPI

Inflation may have just peaked. And with it, mortgage rates could come crashing down sooner than economists expect. But what would cause a scenario like this, especially as the Federal Reserve continues to bombard Americans with higher and higher interest rates? And, with supply chain shortages abound, how do we know that inflation won’t boomerang back in 2023, creating an even worse problem than before? Stick around. Dave has the answers.For the past year, Americans have dealt with high inflation rates and the crushing weight of purchasing power declining. Food, energy, electronics, and most importantly, housing, have skyrocketed in price. To tame this economic beast, the Fed unleashed a series of almost unimaginable rate hikes, slowing down homebuying, borrowing, and business building in the process. This was part of the plan, and we’re just now seeing the effects of these high rates on inflation.But what will happen once inflation numbers start to cool? Will the Fed suddenly lower interest rates and turn the housing market tap back on again? Will droves of homebuyers get back into the market, causing the same amount of competition that high rates were supposed to solve? Assemble your post-thanksgiving sandwich, plug in, and get ready for some up-to-date data drops from Dave Meyer.In This Episode We CoverNovember's latest inflation rate updates and some good news for the American economyThe three reasons why inflation could start to dramatically drop in 2023How a global recession could foil the Fed’s plan and shoot rates back downWhether or not mortgage rates will reverse once the Fed hits their target inflation rateHow the ten-year treasury yield almost identically maps mortgage ratesChina’s lockdowns, Russia’s invasion of Ukraine, and other global events that shocked the supply chain And So Much More!Links from the ShowFind an Investor-Friendly Real Estate AgentBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelDave’s BiggerPockets ProfileDave’s Instagram2023 Mortgage Rate Outlook—You Won’t Believe What Could HappenThe Fed’s Plan for Future Interest RatesCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-55Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

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