Is a Recession Imminent?

The Mortgage Voice
The Mortgage Voice
Is a Recession Imminent?

Is the US facing a recession? Many factors contribute to an economy going into recession, and the list of unknowns to consider when trying to predict the direction the economy will take is lengthy. One of the major concerns is what will happen with the war in Ukraine. It is strongly influencing the price of commodities, as the area produces a large number of goods exported to other countries, such as wheat and hard minerals, as well as Russian oil and gas. How will that affect the price of groceries and the cost of filling up at the pump? Does it look to be a lengthy conflict? If it proves to be so, how will it affect planning for future major expenses?

Another consideration is the outlook in the real estate market, where questions are plentiful, and answers are as varied as the regions they cover. Will there be a rise or a fall in prices? Are properties priced reasonably, or is there price gouging going on? Is inventory available, and will there be more affordable housing? How are the rising mortgage rates and the Fed’s interest rates determining the ability of people to qualify for a home? And how is inflation shaping the decision-making process?

Experts are weighing all of these above elements (and more) and predicting 12 to 18 months out as the presumptive timeline for a recession, with the Fed saying that there is a good possibility we can stave it off. How will the economy react during that period, and will the powers that be provide enough solutions to keep a recession at bay? This week’s guests include:

– Cindy Bui (Real Estate and Loan Consultant) talks about finding the right loan for each client and advocates patience in this volatile market.

– Livier Becerra (Malibu Funding) discusses helping prospective home buyers deal with rapid changes in rates during the loan application process.

– Chris Groves (Groves Capital) gives an overview of what’s happening in the market.