Hi HODLers,
As expected, the rate hikes by the FED has already had a tremendous impact on worldwide housing market.
Investors are watching closely the US Housing Market as it has been so strong for the past 15 years.
I want to be clear, there is a very low chance of anything like the 2008 Housing Krach but this will still impact the economy / debt burden and the inflation in the US.
Average 30Y fixed Mortgage Rate
The monthly mortgage for an average US Home has increased by $300 per month! Making it unafordable for most US citizens.
Why am I talking about it? Well, because this is a direct impact of the FED policy. As long as they do not see inflation go down to 2-3%, they will keep this policy and the housing market will weaken.
These hikes also impacted risk-on assets such as stocks and cryptocurrencies. I am looking at this closely as I expect FED to pause their hikes when a recession might be in sight due to these economic shocks.
That is when I would like to deploy all of my capital.
Stay safe out there and... Be PATIENT!