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What will happen to home prices if inflation stays high? Here’s what some experts think
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The unemployment rate remains low at 3.9%, according to the Bureau of Labor Statistics. On the flip side, inflation is at 3.50% — 1.50% higher than the Federal Reserve’s target rate. Rates for car loans and mortgages are much higher than they were a few years ago, too.
Because of this, some homebuyers are finding it more difficult to afford a home since the average 30-year mortgage rates are over 7%. If you want to purchase a home, you may wonder whether you should wait for rates to drop. However, you should be aware of what could happen if inflation rates remain high.
See what mortgage rate you could secure here now.
What will happen to home prices if inflation stays high?
Here’s what can happen to home prices if inflation remains elevated, according to the experts we consulted.
Home prices could rise
“Higher inflation means higher mortgage rates, which in turn means lower housing affordability conditions,” says Robert Diez, Chief Economist at National Association of Home Builders. NAHB “research finds that at today’s mortgage rates, and today’s home prices and household income levels, only a quarter of American households can afford a typical home.”
Diez isn’t the only economist who thinks home prices could remain elevated. Brad Dillman, Chief Economist at RPM Living, an investment and management company, believes a lack of inventory is driving up prices.
“Today, home prices are increasing in part because there is relatively little listed inventory, which has greatly benefitted new home builders,” Dillman says, adding that “if this trend continues, we can expect new single-family home construction to remain relatively elevated.”
Brian Durham, Vice President of Risk Management and Managing Broker at Realty Group LLC and Realty Group Premiere, thinks home prices could rise if mortgage rates fall.
“The most significant price increases will happen again if and when mortgage rates come back down and millions more homebuyers come off the sidelines and back into the market,” notes Durham. “Unless the supply of homes increases significantly you can expect prices to continue increasing, barring something bad happening to the economy.”
Lock in a mortgage rate before home prices rise further here now.
Home prices could remain flat
Dillman also believes there could be a scenario where home prices remain flat because renting is more affordable in some areas.
“Weakness in multifamily rentals today may serve to siphon demand from the for-purchase space because renting is more affordable in today’s real estate market [than buying a home],” says Dillman. “With rents down year over year in many large traditionally affordable markets, this is becoming more common.”
Home prices could fall
Dillman also said that home prices could fall despite high inflation – if the economy suffers major job losses.
“Significant job losses, particularly among full-time workers, could cause an increase in mortgage defaults and serve to reduce marginal demand,” says Dillman. “The oversupply of new homes, coupled with an uptick in existing homes for sale, may cause a market that has been rising on little volume (home sale transactions) to experience a decline in home prices.”
The bottom line
It’s challenging to predict what will happen to home prices if inflation remains high. “The housing market is complex enough that even a Federal Reserve rate cut wouldn’t have a known impact on housing prices,” says Christopher Flis, a certified financial planner and President of Resilient Asset Management.
Regardless of whether inflation leads to higher or lower home costs, it’s crucial to review your budget so that you can buy a home you can afford. To increase your chances of qualifying for the best mortgage rate for your situation, shop around with at least three to five lenders. Also, keep in mind that even if you buy a home today with a relatively high mortgage rate, you can also refinance later if rates drop.
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How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
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The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
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How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
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The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.