Stable Economy Vs Home Prices #homeprices #economygrowth #thefreedomshow

When the Fed raises interest rates like they have substantially in the past year and a half to two years, what does that usually say about the economy? Well, the Fed raises rates when the economy's strong and inflation is high and people are employed. We have even more open job positions in America today than we have people to work at those positions. So that's why they're increasing rates so much to cool down this economy. Everyone feels stable in their job and they have other job options. What happens when people feel stable in their job and stable in their income and they have savings, an income like they do, what are they more likely to do? Put down roots and buy a home? So increasing mortgage rates are really a proxy for the economy, saying that the economy is doing really well. So when we look back historically, the last 30 years, that's why higher rates tend to correlate with higher home prices.