Between GameStop, Silver, Stimulus, and COVID-19 Progress, it\u2019s fair to say that 2021 is keeping things interesting! If you have been following how this impacts the real estate market, then you will know that the latest headlines have all been pointing at an increase in interest rates. I wanted to break this down for you because we are still in unprecedented economic times, and it\u2019s important that if interest rates do increase, you know how it will impact a buyer\u2019s purchasing power.First and foremost, I want to state that I do not personally believe that interest rates will increase enough to slow demand. There are some economists and journalists stating that rates could go up as high as 4%. This is very unlikely because the Federal Reserve is currently purchasing Mortgage Back Securities (MBS) and have committed to do so until 2023. That being said, they are not the only buyers of mortgage-backed securities\u2026 which is why when the whole GameStop fiasco happened, we saw an uptick in rates as hedge funds pulled out of their MBS holdings to cover their \u201cshorts\u201d (all puns intended).There is also concern that 1.9 Trillion dollar stimulus will bring about higher interest rates. This is because as the government borrows funds, it creates more treasury bonds. More supply in bonds means that their value drops, and less investors are interested in purchasing them. Since bonds and Mortgage-backed securities are similarly traded, many people believe that what happens to bonds will also happen to the MBS market. However, I want to remind you they only trade closely because they are similar type investments\u2026 long term, lower return, typically very secure,: and have minimal credit risks. Make no mistake- They do NOT have a direct correlation to one another. How the bond market reacts to stimulus\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Between GameStop, Silver, Stimulus, and COVID-19 Progress, it\u2019s fair to say that 2021 is keeping things interesting! If you have been following how this impacts the [...]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3757"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/comments?post=3757"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3757\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/media?parent=3757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/categories?post=3757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/tags?post=3757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}