Rising Mortgage Costs Will affect The Residential Side The Most!

[Matthew Crivelli]

It's looking like the residential housing market is in for some major pain. I'm scared to even think where rates could be in another year. The refinances have already dried up and I think inventory will stay low. Why? Because who in their right mind would sell a house that has a 3% rate. The cost of a new loan will scare buyers into staying put. This is going to affect realtors as much as residential lenders. 

I believe this will keep prices at least stable (even with the rates up) and things will continue to move within the investment sector of this market. With consumer debt at all time highs and inflation continuing to take affect investors may run into more opportunity then when the money was super cheap if people have a hard time paying bills and foreclosures start to rise.  Plus we all know where rents are going...

I hope I'm wrong about the residential side but I just don't see moving as a viable option for your average American, at least in the short term. 

Would love to hear others opinions as I always try to go into things thinking I might be wrong!