Houzzle Financial's Blake Harbin explains the concerns over increasing mortgage rates, and how that could leave a lasting effect.
MILTON, Ga., April 6, 2022 /PRNewswire-PRWeb/ -- Anyone who's trying to buy a house right now is probably experiencing growing struggles.
That's because mortgage rates have soared to new heights, possibly the highest they've been in nearly four years—and with no end in sight. As a result, a lot of properties may soon end up being out of reach of potential new buyers, namely newcomers and families, just because they're becoming so hard to afford.
Blake Harbin, who serves as CEO of Houzzle Financial, a mortgage lending company, in a Q2 announcement made on April 6, expressed his concerns for this market.
"It hasn't been this raucous since 1980," Harbin explained, pointing out how interest rates haven't been this high since the Jimmy Carter era. "Granted, we had the right leadership to turn us around since that point, but these days, it's just too hard to tell."
Harbin also discussed how closely the Federal Reserve is tied in with mortgage rates, and how those are being affected by everything that's going on in the market. "Instead of seeing a quarter-point bump or a rise of even half a percent, I think we're looking at a whole percentage point," he explained. "But this will barely scratch the surface in slowing down inflation.
"I was hoping we'd see some positive from it. Unfortunately, it will be one of many quick interest rate hikes. We could soon be looking at all-time record-high hikes."
That said, Harbin fears the worst when it comes to what comes next. "We can expect a recession," he said.
So, is there any resolution in sight? Harbin remains hopeful, but the responsibility sits with higher-ups for the moment. "Real-world inflation is already in double digits because the government under-reports little things, like gas and groceries, the very things we need and buy in real life," said Harbin. "These cascading effects will substantially curtail home buying for Americans.
"Instead of bringing the proverbial bacon home, literal bacon costs you an extra 18.6 percent higher. It will continue to add to the American families' struggles who will find it most costly to put food on the family's tables."
He concluded, "This is a road that can even lead to hyperinflation."
Blake Harbin is the CEO of Houzzle Financial, a mortgage lending company in the Southeast. He has been a small business owner for more than two decades and is an expert in the real estate industry. Blake is running as a candidate for Georgia's 6th congressional district in 2022.
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