- People have been paying crazy prices on homes because of low rates
- Now that rates are going up, no one is going to be able to purchase those homes (if you live in the house for a long time and do not lose your job, it might not affect you)
- With rates and prices going up, people will spend less
- When people spend less, companies downsize/go under
- When people are laid off, they can’t pay their debt. Many will lose those high priced homes and will not be able to sell them.
- They will also be forced to pull out of investments (at a loss), sending the stock market spiraling down.
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