Why I Wouldn't Worry About a Housing Market Crash Right Now
Right now, the housing market is red-hot. Home values are up across the country, and existing homeowners are sitting on record levels of equity. But some people are worried that the housing market is about to take a serious turn for the worse. For one thing, mortgage rates have been on the rise since the start of the year, and they've climbed at a rapid clip. If that continues, buyer demand could start to wane, leading to a dip in home prices.
Furthermore, some financial experts are already sounding warning bells about an impending recession. Whether their predictions are accurate is up for debate. But a lot of people are worried about a prolonged economic downturn. And if that were to occur, it, too, could create a scenario where homebuyer demand drops, leading to a significant dip in home prices.
But while it's easy to see why some people may be worried about a housing market crash, I don't think there's reason to stress. Here's why.
Source Fool.com
